USER GUIDE | PUBLIC

Document Version: 1.1 – 2017-09-27

SAP Agricultural Contract Management

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

THE BEST RUN

Content

1 SAP Agricultural Contract Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

2 Changes and New Features in SAP Agricultural Contract Management 4.0. . . . . . . . . . . . . . . . 9

2.1 Changes and New Features per Support Package. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2 What's New: Master Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.3 What's New: Contract Capture and Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.4 What's New: Integration with SAP Commodity Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.5 What's New: Application Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.6 What's New: Contract Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3 Master Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
3.1 Discount Premium Quality Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Creation of Discount Premium Quality Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3.2 Tolerance Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Creating Tolerance Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Setting Status of Tolerance Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.3 Valuation Point. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

4 Contract Capture and Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4.1 Commodity Contract. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Contract DPQS Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Contract Tolerances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Contract Optionalities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Contract Related Trades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.2 Contract Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Contract Capture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Contract Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Storage Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Cancellation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Displaying Commodity Item Details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

5 Integration with SAP Commodity Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

5.1 Commodity Pricing Engine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Uses of Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
ACM Pricing View. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Pricing Condition Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Pricing Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Pricing Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

SAP Agricultural Contract Management

2 PUBLIC Content
 Provisional Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Pricing Distribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.2 Exposure Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Creation of Raw Exposures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Risk Profiles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Exposures Lifecycle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Risk Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
Mark to Market Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
Profit and Loss Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

6 Expense Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129

6.1 Link Service Contract to Planned Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
6.2 Invoice Router. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132
6.3 Automatic Accrual of Expenses during Contract Execution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
6.4 Document Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

7 Call-Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
7.1 Call-Off Modes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
Calling off Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Call-Off Workcenter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
7.2 Reversal of Call-Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

8 Load Data Capture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

8.1 Load Data Capture (LDC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Load Data Capture Workcenter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Load Data Capture: Vendor Split. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Load Data Capture: Integration with Nomination and TSW. . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Load Data Capture: Integration with Application Document. . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Adding Tabs to LDC Screens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
8.2 Orchestration Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156
Document Generation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Orchestration Framework Automation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Recovery Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
8.3 Back-to-Back. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Nomination Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
8.4 SIT Cockpit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165

9 Contract Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

9.1 Application Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Displaying Application Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Alternative Application Processing Option. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
9.2 Application Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .172
9.3 Manual Application Workcenter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175

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 Setting Final Delivery Indicator. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .175
Collating Vendor Split. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
9.4 Application Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Creating Application Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Displaying and Maintaining Application Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
9.5 Spot Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Spot Purchase and Accumulate to Own. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181
In Store Sales and Purchase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
PAD and CAD Spot Reversal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
9.6 Commingled Loads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Commingled Load Entry and Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

10 Contract Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

10.1 Settlement Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Settlement Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
10.2 Agency Business Document. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .224
Displaying and Maintaining Agency Business Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
10.3 Maintenance of Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Settlement Workcenter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
10.4 Non-Standard Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
Washout Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Underfill Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242
Cancellation Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Circle Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
10.5 Invoicing Settlements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
10.6 Provisional Settlements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .250
10.7 Revenue Recognition and Purchase Realization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Revenue Recognition and Purchase Realization Monitors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
Purchase Realization Processor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255
Revenue Recognition Processor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
10.8 Storage Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .258
Storage Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
FX in Storage Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262

11 Inventory True-Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .265

11.1 Inventory True-Up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266

12 Possible Third Party Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268

12.1 Third Party Integration using SAP PI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
Reference Data Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
Amendments and Cancellations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
De-pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272

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4 PUBLIC Content
 Goods Movement Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

13 Operations Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275

13.1 Archiving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
13.2 Monitoring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
13.3 Error Handling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
13.4 Transport and Change Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277

14 Country-Specific Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278

14.1 Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Contract Capture and Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Expense Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
Load Data Capture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Brazil Workcenter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
Contract Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Special Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297

SAP Agricultural Contract Management

Content PUBLIC 5
1 SAP Agricultural Contract Management

Product Information

Product SAP Agricultural Contract Management

Release 4.0 SP01

Based On SAP enhancement package 8 for SAP ERP 6.0

Last Documentation Update September 2017

Use

The trading of agricultural commodities, such as wheat, corn, soybeans, and coffee, is a niche business that
has highly specific requirements. Commodity traders can have relationships with many counterparties and
maintain several contracts with each one. The terms and pricing data in an agricultural commodity contract
can be highly complex and include pricing adjustments based on quality factors. In addition, the contract
execution can involve both planned and unplanned deliveries, which must be recorded and assigned to one or
more contracts. Finally, the contract settlement process must handle prepayments, reassignments, quality-
based pricing, tolerances, and optionalities. SAP Agricultural Contract Management enables commodity
traders to capture and manage these complex commodity contracts. It is an end-to-end solution that supports
the full contract life-cycle, including the capture of the contract terms, the logistical processing, and the final
settlement and closure.

SAP Agricultural Contract Management supports the following commodity contract scenarios:

● Third Party Purchase

● Third Party Sale
● Intercompany
● Intracompany
● Back-to-Back
● Spot Purchase
● Commingled Stock
● Washout (including the Circle variation)

Integration

SAP Agricultural Contract Management is an addon for SAP ERP. A minimum release of SAP ERP 6.0
enhancement package 6 is required. SAP Global Trade Management and SAP Trader's and Scheduler's

SAP Agricultural Contract Management

6 PUBLIC SAP Agricultural Contract Management
Workbench must be active. SAP Agricultural Contract Management is also fully integrated with SAP Financial
Accounting and SAP Commodity Management.

Optionally, SAP Agricultural Contract Management can be integrated with a third party trading system via an
SAP NetWeaver Process Integration (SAP PI) system. In this implementation scenario, contract data is
captured through the third party trading system and then flows into SAP Agricultural Contract Management.
Then, any changes made to the contract data or contract master data in SAP Agricultural Contract
Management are communicated back to the third party trading system.

For more information about PI content that is supported with SAP Agricultural Contract Management, see .

The following figure illustrates the technical architecture of SAP Agricultural Contract Management:

Technical Architecture Model for SAP Agricultural Contract Management

Features

Contract Capture and Maintenance

You can capture all of the complex terms and conditions that govern the fulfillment of a commodity contract
directly in SAP Agricultural Contract Management. However, before you can begin to capture commodity
contracts, you must configure certain contract master data. For more information, see Master Data [page 14].
For more information about capturing contracts in SAP Agricultural Contract Management, see Contract
Capture and Maintenance [page 37].

Commodity Pricing Engine

You can use this feature to retrieve pricing formulas in business documents and evaluate them to calculate final
prices for commodities. The resulting price is then transferred to the condition types that are used in
commodity pricing. You can use the system to capture basis and futures price components. You can also enter
additional pricing data at commodity item level and at CPE level. The system also enables you to enter

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provisional prices that can later be overridden when the contract is finally settled. For more information, see
Commodity Pricing Engine [page 56].

Expense Management

You can use the system to manage the costs associated with a commodity contract. For more information, see
Expense Management [page 129].

Call-Off

During the execution of a contract, you can call-off a quantity of the contract by raising a purchase order or a
sales order to link a delivery to a specific contract. For more information, see Call-Offs [page 140].

Load Data Capture

You can use the system to capture the details of delivered loads, including weights, volumes, and quality
characteristics. The system then uses these details during the contract application and contract settlement
processes. For more information, see Load Data Capture [page 145].

Contract Application

You can use the contract application features to validate a delivered load and assign it to the appropriate
commodity contract. For more information, see Contract Application [page 167].

Contract Settlement

During the execution of a contract, you can financially settle various quantities with the contract counterparty,
for example, moved quantities, washout quantities, and canceled quantities. For more information, see
Contract Settlement [page 213].

Inventory True-Up

You can use the system to calculate the value of the firm's inventory. The inventory trueup process takes
account of both contract related inventory changes and non-contract related inventory changes such as
shrinkage. For more information, see Inventory True-Up [page 265].

Exposure Management

You can use the system to manage the risks and exposures that the various products may face due to several
unforeseen circumstances. Various types of exposures are created at different points of the lifecyle of the
contract. for more information, see Exposure Management [page 64].

Possible Third Party Integration

Agricultural commodity management may require sophisticated risk analytics, portfolio management, and
granular relationships with financial instruments. To support these additional requirements, SAP Agricultural
Contract Management can be integrated with a third party trading system. For more information, see Possible
Third Party Integration [page 268].

Country-Specific Features

The solution provides additional features that are designed to meet country-specific requirements for
agricultural commodity contracts. For more information, see Country-Specific Features [page 278].

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2 Changes and New Features in SAP
Agricultural Contract Management 4.0

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management 4.0 since SAP Agricultural Contract Management 3.0 or that have
been made available with a Support Package for SAP Agricultural Contract Management 4.0.

2.1 Changes and New Features per Support Package

Support Package 01

Function Type of Change Description More Information

Data Protection and Privacy Enhancement Additions to read access log­ See updates in the Adminis­
ging, deletion, and change tration Guide
log

2.2 What's New: Master Data

New master data for SAP Agricultural Contract Management 4.0.

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management (ACM) 4.0 since SAP Agricultural Contract Management 3.0 or with a
Support Package for SAP Agricultural Contract Management 4.0. The following new events master data has
been created for SAP ACM Profit and Loss (P&L) reporting:

P&L Events Master Data for SAP ACM 4.0

Event Event Category Description

CAK_UF PRICING Underfill

CAK_UF_PC PRICING Underfill Price Change

CAK_CAN PRICING Cancellation

CAK_CAN_PC PRICING Cancellation Price Change

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Event Event Category Description

WASHOUT EXECUTION Washout

REAL_FIX_W EXECUTION Washout Realization

WASHOUT_R EXECUTION Washout Reversal

CIRCLE EXECUTION Circle

REAL_FIX_C EXECUTION Circle Realization

CIRCLE_R EXECUTION Circle Reversal

Related Information

Master Data [page 14]

2.3 What's New: Contract Capture and Maintenance

New features for contract capture and maintenance in SAP Agricultural Contract Management 4.0.

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management (ACM) 4.0 since SAP Agricultural Contract Management 3.0 or with a
Support Package for SAP Agricultural Contract Management 4.0. The following table provides an overview of
new and enhanced functions that are related to SAP ACM contract capture and maintenance.

New Features for Contract Capture and Maintenance

Function Type of Change Description

Update of tables Versioned Logistics New The update (with trading contract data)
Pricing (CM_VLOGP) and of the tablesVersioned Logistics Pricing
(CM_VLOGP_KONVD) during contract (CM_VLOGP) and (CM_VLOGP_KONVD) is
capture. triggered during the contract capture
process.

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2.4 What's New: Integration with SAP Commodity
Management

New features for the integration of SAP Agricultural Contract Management 4.0 with SAP Commodity
Management.

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management (ACM) 4.0 since SAP Agricultural Contract Management 3.0 or with a
Support Package for SAP Agricultural Contract Management 4.0.

SAP ACM 4.0 is integrated with SAP Commodity Management EHP 08 SP05 for ERP 6.0. The following tables
provide an overview of new and enhanced functions that are related to SAP ACM's integration with SAP
Commodity Management.

Risk Reporting

Risk Reporting

Function Type of Change Description

Risk reporting Enhanced For risk reporting, you can now use po­
sition reports based on a hierarchy of
CDS views for end-of-day, current val­
ues, and day-over-day snapshots.

Mark-to-Market Reporting

Mark-to-Market Reporting

Function Type of Change Description

Mark-to-Market Reporting New You can now use mark-to-market re­

porting to analyze data about your open
logistical documents and stock.

Stock MtM Delimiting Report New You can use this report to delimit the re­
alized and unrealized stock on hand re­
cords of application documents that are
created during goods movements.

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Changes and New Features in SAP Agricultural Contract Management 4.0 PUBLIC 11
Profit and Loss (P&L) Reporting

P&L Reporting

Function Type of Change Description

Profit and Loss Reporting New You can now use profit and loss report­
ing for beginning positions and new ac­
tivities to deduce overall profit and loss
attribution on mark-to-market calcula­
tions.

Non-standard Settlements Overview New This report gives you an overview of the
Report non-standard settlements (for cancella­
tion and underfill scenarios) that have
been made for a particular company
code.

Related Information

Risk Reporting [page 68]

Position Reporting [page 72]
Mark to Market Reporting [page 86]
Profit and Loss Reporting [page 103]

2.5 What's New: Application Document

New features for application documents in SAP Agricultural Contract Management 4.0.

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management (ACM) 4.0 since SAP Agricultural Contract Management 3.0 or with a
Support Package for SAP Agricultural Contract Management 4.0. The following table provides an overview of
new and enhanced functions that are related to SAP ACM's application document.

New Features for Application Document

Function Type of Change Description

Pricing simulation for application docu­ New Pricing is now automatically executed
ment for the application document for Mark-
to-Market reporting.

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Related Information

Application Document [page 168]

Mark to Market Reporting [page 86]

2.6 What's New: Contract Settlement

New features for contract settlement in SAP Agricultural Contract Management 4.0

This section of SAP Library provides an overview of changes and new features that have been introduced in
SAP Agricultural Contract Management (ACM) 4.0 since SAP Agricultural Contract Management 3.0 or with a
Support Package for SAP Agricultural Contract Management 4.0. The following table provides an overview of
new and enhanced functions that are related to SAP ACM contract settlement.

New Features for Contract Settlement

Function Type of Change Description

Pricing redistribution for settlement New Pricing redistribution for the application
document is now automatically trig­
gered before a settlement is released.

Realization of update of Versioned New The realization of the update in the

Logistics Pricing table for revenue rec­ Versioned Logistics Pricing table is now
ognition automatically triggered for the respec­
tive application document.

Pricing redistribution for a canceled New The Versioned Logistics Pricing

quantity (CM_VLOGP) and (CM_VLOGP_KONVD)
tables are automatically updated with a
pricing redistribution before the settle­
ment for a canceled quantity is re­
leased.

Related Information

Contract Settlement [page 213]

Application Document [page 168]

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3 Master Data

Before you can capture a commodity contract, you must maintain the master data used to define the contract
terms and conditions.

The following master data is maintained in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Basic Settings :

● Contract Types (for example, third party purchase, third party sale, intercompany purchase, and so on)
● Quantity Types (for example, consumed quantity, canceled quantity, overfill quantity, and so on)
● Text Assignments
● Modes of Transport and Means of Transport
● Related Trade Types
● Title Transfer Settings
● Process Parallelization Settings
● Currency Mappings
● Cancellation Codes
● Optionality Categories
● Crop Seasons

The following master data is maintained in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Setup for Master Data :

● Pricing Aspect Types and Conditions

● Tolerance Types
● Discount Premium Quality Schedule (DPQS) Configuration Data (for example, calculation rules, derived
rules, rounding parameters, and so on)

When you have defined your Customizing settings, you must also define the following schedules:

● DPQS
For more information, see Discount Premium Quality Schedule [page 14].
● Tolerance Schedules
For more information, see Tolerance Schedule [page 32].

You must also define valuation points. For more information, see Valuation Point [page 36].

3.1 Discount Premium Quality Schedule

Definition

A discount premium quality schedule (DPQS) specifies the quality characteristics to be measured for a
commodity, the acceptable values for those characteristics, and any discounts or premiums to be applied. The

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14 PUBLIC Master Data
DPQS also specifies volume adjustments to be applied based on quality characteristics such as moisture
content and foreign material content.

Use

The system uses the DPQS to evaluate the quality of a load, determine whether a load is of an acceptable
quality, and calculate the relevant discounts or premiums. The results of the evaluation are used in the contract
application process (to match loads to pricing trading contracts) and in the contract settlement process (to
apply relevant discounts or premiums).

Structure

A DPQS consists of a volume schedule and a value schedule. First, you define a volume schedule. Then, you
define a value schedule and assign the relevant volume schedule to it.

Volume Schedules

Volume schedules are used to determine whether a quantity should be adjusted based on the value of a
characteristic. For example, if the quality characteristic, moisture, is between 0 and 10%, the load quantity may
need to be reduced by 1% for each 1% of moisture to determine the actual quantity to apply against the
contract. A volume schedule contains the following information:

● Header Information
The header includes information such as the Schedule Name, the Material, the Regulatory Agency, and the
validity date range.
● DPQS Characteristic Information
The characteristic information includes the relevant characteristics for the material (for example, moisture
content), along with details such as the number of decimal places, the measurement unit, and whether the
characteristic affects contract application and/or contract settlement.
● DPQS Characteristic Range List
The characteristic range list specifies the valid value ranges for each characteristic and the increase or
decrease in quantity to be applied for each one, as illustrated in the following example:

 Example

Characteristic Minimum Value Maximum Value Adjustment Per Increment

Moisture 0% 3% -1% 1%

Moisture 4% 7% -2% 1%

Foreign Material 0% 2% -1% 1%

Foreign Material 3% 4% -2% 1%

Value Schedules

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Value schedules are used to determine the acceptable value ranges for the quality characteristics for a
commodity, along with any relevant premiums and discounts. A volume schedule contains the following
information:

● Header Information
The header includes information such as the Schedule Name, the Material, the Regulatory Agency, the
validity date range, and the name of the related volume schedule.
● DPQS Characteristic Information
The characteristic information includes the relevant characteristics for the material (for example, moisture
content), along with details such as the number of decimal places, the measurement unit, and whether the
characteristic affects contract application and/or contract settlement.
● DPQS Characteristic Range List
The characteristic range list specifies the valid value ranges for each characteristic and the discount or
premium to be applied for each one, as illustrated in the following example:

 Example

Characteristic Minimum Value Maximum Value Charge Type Action

Moisture 0% 2% Premium Accept

Moisture 3% 6% Discount Accept

Moisture 7% 100% Reject

● Material Schedule
A material schedule is a list of the materials that are acceptable for evaluation during contract application.
The system uses the material schedule to limit the number of possible matching contracts, prior to
comparing the actual load values with those required by the DPQS data in the contract. When a value
schedule is saved, the system generates the material schedule based on the material classifications
defined for the entered material. For example, a class of materials, CORN, may be defined with a broad
range of values for characteristics such as moisture, foreign material content, and broken kernels.
Materials such as Yellow Corn 1, Yellow Corn 2, and Yellow Corn 3 may be defined as members of this class
with smaller, possibly overlapping ranges for the characteristics. Depending on the ranges defined in the
value schedule, one or more of these materials may be included on the corresponding material schedule.

Integration

You define DPQS volume schedules and values schedules as master data. Then, you assign a DPQS value
schedule to a commodity contract. Note that a value schedule already has an associated volume schedule, so
you don't need to assign a volume schedule to the contract. The DPQS data for the contract is used during the
contract application and contract settlement processes.

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16 PUBLIC Master Data
More Information

Creation of Discount Premium Quality Schedules [page 17]

3.1.1 Creation of Discount Premium Quality Schedules

Use

Discount premium quality schedules (DPQS) are defined as master data, and then assigned to commodity
contracts. The DPQS is used to define the acceptable quality terms for the contract.

The following constraints apply:

● Only one DPQS value schedule can be defined as the default schedule for a plant for a given time period.
● Only schedules with a status of released may be used in contracts.
When you create a volume schedule or a value schedule, the system defaults its status to draft. When you
have finalized the schedule, you change its status to released, and it becomes available for use in the
system. If a schedule is no longer valid, you can change its status to retired.

Process

1. If required, you create global derived characteristics (see Creating Global Derived Characteristics [page
18]).
2. You create a volume schedule (see Creating Volume Schedules [page 21]).
3. You simulate the volume schedule (see Simulating Volume Schedules [page 24]).
4. You release the volume schedule (see Setting Status of Volume Schedules [page 25]).
5. You assign the volume schedule to a Trader's and Scheduler's Workbench (TSW) location (see Assigning
Volume Schedules to TSW Locations [page 26]).
6. You create a value schedule (see Creating Value Schedules [page 26]).
7. You simulate the value schedule (see Simulating Value Schedules [page 32]).
8. You release the value schedule (see Setting Status of Value Schedules [page 30]).
9. You assign the value schedule to a TSW location (see Assigning Value Schedules to TSW Locations [page
31]).

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Master Data PUBLIC 17
3.1.1.1 Creating Global Derived Characteristics

Prerequisites

● You are authorized to create global derived characteristics.

● You have maintained the calculation rules in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Setup for Master Data DPQS Maintain DPQS
Parameters .

Context

Optionally, you can define global derived characteristics, which you can then use in discount premium quality
schedules (DPQS).

For example, you could define a global derived characteristic based on moisture content and foreign material
content. Then, in a value schedule, you could use this global derived characteristic to apply an additional
discount when the moisture content and the foreign material content both exceed 3%.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Global Derived Characteristics .
2. Double click the Create Global Derived Char. node.
3. Enter the required data and press ENTER .

The Unit/Calculation Rule screen area and the Characteristics Selection screen area appear.
4. Enter the required data.
5. Save your entries.

Results

You can now use the new global derived characteristic in DPQS volume schedules and value schedules.

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18 PUBLIC Master Data
Next Steps

To change an existing global derived characteristic, on the Global Derived Characteristic screen double click the
Change Global Derived Char. node.

To display an existing global derived characteristic, on the Global Derived Characteristic screen double click the
Display Global Derived Char. node.

To create a global derived characteristic with Duval calculation rule, see Example: Duval Calculation [page 19].

3.1.1.1.1 Example: Duval Calculation

Use

A flag which indicates whether the “Duval” calculation rule should be applied for the DPQS calculation. By
selecting the checkbox for Duval, the industry standard default values will be used, instead of using the actual
characteristic values.

The following scenario represents a case in which the Duval calculation can be utilized:

A company purchases a commodity, for example wheat, immediately via a purchase contract. In this case, the
Duval calculation rule can be applied, if the company decides to use industry standard default values for
volume adjustments for certain characteristics, instead of using the actual characteristic values reported by
the vendor or determined by the company.

The calculation formula is as follows:

Gross Weight x (Input % - Standard %) / (100 % - Commercial Default %)

Prerequisites

You have maintained the calculation rule and the derived rule for Duval in Customizing for Logistics - General
under Global Trade Management Agricultural Contract Management Setup for Master Data DPQS
Maintain DPQS Parameters .

Process

Create Global Derived Characteristic for Duval

1. Choose SAP Easy Access menu Agricultural Contract Management Master Data Discount Premium
Quality Schedules Maintain Global Derived Characteristics .

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Master Data PUBLIC 19
2. Choose Create Global Derived Char. and enter the following data in the Global Derived Characteristics
screen area:
○ Characteristic
○ Description
○ Material
○ Int. meas. unit (unit of measure)
Choose % (percentage).
○ Calculation Rule
Choose DVL (Duval Calculation).
3. Select one characteristic, for example MOISTURE (%), under the Characteristics Selection screen area.
4. Under the Calculation Rule screen area, enter the relevant Mapped Characteristic ( MOISTURE (%) in this
case) and the Reference Value.
You can now use this global derived characteristic for volume schedule in DPQS calculation.

Use Global Derived Characteristic for Duval in Calculation

1. Choose SAP Easy Access menu Agricultural Contract Management Master Data Discount Premium
Quality Schedules Maintain Volume and Value Schedule .
2. Choose Volume Schedule and search the relevant volume schedule under the DPQS Selection Screen area.
The relevant DPQS schedule header data and characteristic appear.
3. On the Characteristic tab under the DPQS Characteristic screen area, you will see the original characteristic
(for example MOISTURE) mapped and the global derived characteristic (for example DUVAL_MOISTURE)
defined.
4. Enter the characteristic value with the original characteristic.
Make sure that the DVL is selected for calculation rule and the Multiplier is selected for calculation
method respectively.
5. On the Simulate DPQS tab, enter the relevant quantity and the characteristic value, and then run the
simulation. Based on the input value, the Duval calculation takes place.

 Example

The following example shows how the Duval calculation rule is applied to calculate the net weight of a
commodity.

● Gross Weight: 10,000 Pounds

● Moisture: 20%

 Note

It is dried (shrink) down to 14% due to the moisture or the commercial standard of 14% is
applicable in this case.

The net weight can be calculated using the Duval calculation rule as follows:

Shrink due to Moisture:

= 10,000 x (0.20 - 0.14) / (1.00 - 0.14)

= (10,000 x 0.06) / 0.86

= 600 / 0.86

= 697.67 Pounds

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 Net Weight:

= 10,000 - 697.67

= 9,302.3 Pounds

More Information

Creating Global Derived Characteristics [page 18]

3.1.1.2 Creating Volume Schedules

Use

You create volume schedules as part of the discount premium quality schedules (DPQS) master data. Then,
when you create a value schedule, you assign the appropriate volume schedule to it.

Prerequisites

● You are authorized to create volume schedules.

● You have maintained the calculation rules and derived rules in Customizing for Logistics - General under
Global Trade Management Agricultural Contract Management Setup for Master Data DPQS
Maintain DPQS Parameters .
● If required, you have created global derived characteristics (see Creating Global Derived Characteristics
[page 18]).

Procedure

Creating Volume Schedules

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double-click the Maintain Volume Schedule node.

3. In the List of Schedules screen area, choose .

4. In the Header Information screen area, enter the required data.

5. On the Characteristic tab page in the DPQS Characteristic screen area, choose .
You have the following options:
○ Add Characteristics

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 Choose this option to add a characteristic such as moisture content or foreign material content.
○ Add Local Derived Characteristics
Choose this option to define a new derived characteristic for this volume schedule.
○ Add Global Derived Characteristics
Choose this option to add a predefined derived characteristic (see Creating Global Derived
Characteristics [page 18]).
6. Choose the required characteristic, enter the required data for the characteristic, and press Enter .
You can maintain the Base Net and the Volume Calculation Rule columns if you want to use the
corresponding characteristic as a base net for the volume schedule of the DPQS calculation. For more
information, see Example: Base Net Calculation [page 23].
7. Double-click the row for the characteristic.
The DPQS Characteristic Range List screen area appears.

8. On the Characteristic Range tab page in the DPQS Characteristic Range List screen area, choose .
9. Enter the required data and press Enter .
You can enter as many rows as you require to specify the necessary ranges.
10. Save your entries.

Adjusting Evaluation Sequences

Optionally, you can use this procedure to adjust the order in which the system evaluates each characteristic.

1. In the DPQS Characteristic screen area, choose the Characteristic Sequence tab page.
2. Select the characteristic you want to move.
3. Choose one of the following options:

○ : moves the selected characteristic up

○ : moves the selected characteristic down

○ : moves the selected characteristic to the top

○ : moves the selected characteristic to the bottom

4. Save your entries.

More Information

To create a copy of an existing schedule, in the List of Schedules screen area, select the schedule you want to
copy and choose .

You can test new volume schedules using the simulation function. For more information, see Simulating
Volume Schedules [page 24].

Before you can assign a volume schedule to a value schedule, you must set its status to Released. For more
information, see Setting Status of Volume Schedules [page 25].

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3.1.1.2.1 Example: Base Net Calculation

Definition

A flag which indicates whether the characteristic marked is used as a base net for the volume schedule of the
DPQS calculation. You can set the Base Net flag for more than one characteristic, such as moisture, heat,
broken, damaged, foreign material and so on.

The base net weight will be the sum of the adjusted weights for which the corresponding characteristics are
flagged as base net.

On the Characteristic tab you specify a characteristic which you want to use as the base net weight by selecting
the corresponding checkbox in the Base Net column. Then, in the Volume Calculation Rule column, by choosing
the value Base Net, you select a characteristic to which the base net should be applied in the DPQS calculation.

When you calculate the values on the Simulate DPQS tab, instead of using the adjusted values progressively
according to the characteristic sequence defined, the Net Adjusted Application Value of the characteristic
marked will be used as the base net to calculate the corresponding value for the characteristic to which you
selected the base net for the volume calculation rule.

Use

 Example

The following is an example for base net weight:

Assumptions

1. The volume schedule A includes the characteristics for Moisture, Foreign Material, and Damaged and
they are listed in this order on the Characteristic Sequence tab.
2. The pre-adjusted volume for a load of wheat is 1000MT.
3. The Base Net checkbox and the Volume Calculation Rule value ( Base Net) are set as follows:
○ The Moisture characteristic is flagged as the Base Net (checkbox is marked).
○ The moisture adjustment is 1% for every 1% from 1 to 15%.
○ The moisture is 12% which is 3 increments from 15%, and therefore the moisture adjustment
will be 3% or 30MT.
○ The base net calculation can take place as follows: 1000MT - 30MT = 970MT
○ The Foreign Material characteristic is assigned with Volume Calculation Rule value ( Base Net) to
calculate off the base net.
○ The foreign material content adjustment is determined to be 6%, and therefore 970MT x 6% =
58.2MT.
○ The Damaged characteristic is assigned with Volume Calculation Rule value ( Base Net) to
calculate off the base net.
○ The damaged content adjustment is determined to be 2%, and therefore 970MT x 2% =
19.4MT.

Final Net Adjusted Volume Calculation

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Master Data PUBLIC 23
 The final net adjusted volume for the load of wheat will be calculated as follows:

1000MT - 30MT (adjustment for moisture) - 58.2MT (adjustment for foreign material) - 19.4MT
(adjustment for damaged) = 892.4MT

More Information

Creating Volume Schedules [page 21]

3.1.1.3 Simulating Volume Schedules

Context

You can test a volume schedule by viewing the values the system calculates for specified input parameters. You
enter a base quantity, a base unit, and characteristic values; then, the system calculates the contract
application and settlement quantities based on your inputs.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double click the Maintain Volume Schedule node.

3. Enter the Volume Schedule Name and choose .

4. In the List of Schedules screen area, select a schedule and choose .

5. In the DPQS Characteristic screen area, choose the Simulate DPQS tab page.
6. Enter the required data.

7. Choose .

Results

For each characteristic, the system calculates and displays the following values :

● Application Adjustment Value

● Net Adjusted Application Value

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24 PUBLIC Master Data
● Settlement Adjustment Value
● Net Adjusted Settlement Value

3.1.1.4 Setting Status of Volume Schedules

Prerequisites

You are authorized to create volume schedules.

Context

A volume schedule can have one of the following statuses:

● Draft
The system defaults the status of new volume schedules to draft. This status indicates that you are still
working on the volume schedule and it is not ready for use in the system.
● Released
Before you can assign a volume schedule to a value schedule, you must set its status to released.
● Retired
To prevent a volume schedule from being assigned to any new value schedules, you must set its status to
retired.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double-click the Maintain Volume Schedule node.
3. In the DPQS Selection Screen, enter the details of the volume schedule you want to release\retire.

4. Choose .

The system displays the List of Schedules that match your selection criteria.

5. In the List of Schedules screen area, select the schedule you want to release\retire and choose .
6. Choose the relevant option ( Release DPQS or Retire DPQS).

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3.1.1.5 Assigning Volume Schedules to TSW Locations

Prerequisites

You are authorized to assign volume schedules to TSW locations.

Context

You can assign a volume schedule to a Trader's and Scheduler's Workbench (TSW) location. The TSW location
links a volume schedule to a plant. Then, the system uses the plant to determine whether the volume schedule
is permissible in a contract. You assign a volume schedule to a TSW location in Business Rule Framework plus
(BRFplus).

Procedure

1. Enter transaction BRFPLUS.

The BRFplus Workbench appears.

2. Choose the Catalog tab page.
3. Choose Select Catalog and then choose the relevant catalog for S AP Agricultural Contract Management.
4. Choose the volume schedule assignment rule.

The rule details appear.

5. Choose Edit.

6. Choose .
7. Enter the required data.
8. Save your entries.
9. Activate your changes.

3.1.1.6 Creating Value Schedules

Use

You define value schedules as part of the discount premium quality schedules (DPQS) master data. Then when
you create a commodity contract, you assign the appropriate DPQS value schedule to it.

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26 PUBLIC Master Data
Prerequisites

● You have authorization to create value schedules.

● You have maintained the calculation rules and derived rules in Customizing for Logistics - General under
Global Trade Management Agricultural Contract Management Setup for Master Data DPQS
Maintain DPQS Parameters .
● You have created volume schedules (see Creating Volume Schedules [page 21]).

 Note

It is mandatory to assign a volume schedule to a value schedule. Therefore, a volume schedule for the
material must already exist.

● If required, you have created global derived characteristics (see Creating Global Derived Characteristics
[page 18]).

Procedure

Creating Value Schedules

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double-click the Maintain Value Schedule node.

3. In the List of Schedules screen area, choose .

4. In the Header Information screen area, enter the required data and press Enter .
The possible characteristics for the material are displayed on the Characteristic tab page in the DPQS
Characteristic screen area.
5. On the Characteristic tab page in the DPQS Characteristic screen area, select any unwanted characteristics
and choose .
6. Enter the required data for the remaining characteristics, and press Enter .
7. To enter the range values for a characteristic, double-click the relevant characteristic row.
The DPQS Characteristic Range List screen area appears.

8. On the Characteristic Range tab page in the DPQS Characteristic Range List screen area, choose .
9. Enter the required data and press Enter .
You can enter as many rows as you require to specify the necessary ranges. The ranges you enter should
cover all possible values between 0% and 100%, and specify whether matching loads should be accepted
or rejected.
10. Save your entries.

Adjusting Valuation Sequences

Optionally, you can use this procedure to adjust the order in which the system evaluates each characteristic.

1. In the DPQS Characteristic screen area, choose the Characteristic Sequence tab page.
2. Select the characteristic you want to move.

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3. Choose one of the following options:

○ : moves the selected characteristic up

○ : moves the selected characteristic down

○ : moves the selected characteristic to the top

○ : moves the selected characteristic to the bottom

4. Save your entries.

More Information

To create a copy of an existing schedule, in the List of Schedules screen area, select the schedule you want to
copy and choose .

You can define dependency of one characteristic on another characteristic by changing the characteristics
definition at the value schedule and evaluation process within the settlement. For more information, see
Example: Conditional DPQS [page 28].

You can test new value schedules using the simulation function. For more information, see Simulating Value
Schedules [page 32].

Before you can assign a value schedule to a commodity contract, you must set its status to Released. For more
information, see Setting Status of Value Schedules [page 30].

3.1.1.6.1 Example: Conditional DPQS

Definition

Normally a Discount Premium Quality Schedule (DPQS) calculated within the settlement is based on the
characteristic ranges defined in the value schedule and the actual results received at the time of the Load Data
Capture (LDC). With the Conditional DPQS feature, it is possible to define the dependency of one
characteristic on another characteristic. This has been realized by changing the characteristics definition at the
value schedule and evaluation process within the settlement.

The three new fields have been added to the characteristics ranges in the value schedule definition as a part of
master data changes.

The following fields allow you to link and define the dependent characteristics:

1. Characteristics
2. Operator
3. Characteristics Value

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Use

The following is an example of how conditional DPQS works:

 Example

Conditions

1. Foreign material is between 15.01% and 20.00%, and

2. Moisture is greater than or equal to 6% (This is the dependency)

The dependency condition is only applicable for the acceptable ranges. The Characteristics field has either
a flat characteristic, a Global Derived Characteristic or a Local Derived Characteristic. Based on the
characteristics and type, the following approach is applicable:

Flat Characteristics
The Characteristics Value field is compared against the actual value of the characteristic fetched from the
LDC. If the values from both dependent and depending characteristics fall within the acceptable range,
then the discount or premium is calculated within the settlement.

Global Derived Characteristic or Local Derived Characteristic

For global derived characteristic or local derived characteristic, the approach is also similar to the flat
characteristics defined above. This means that the values from both dependent and depending
characteristics should fall within the acceptable range for the discount or premium calculated within the
settlement. The difference between the two is that the global derived characteristic or local derived
characteristic may have included more than one characteristic grouped together and therefore all the
characteristics should fall within the acceptable range.

Activities

To maintain the conditional DPQS, on the SAP Easy Access screen, choose Agricultural Contract
Management Master Data Discount Premium Quality Schedules Maintain Volume and Value Schedule .

More Information

Creating Value Schedules [page 26]

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3.1.1.7 Setting Status of Value Schedules

Prerequisites

You are authorized to create value schedules.

Context

A value schedule can have one of the following statuses:

● Draft
The system defaults the status of new value schedules to draft. This status indicates that you are still
working on the value schedule and it is not ready for use in the system.
● Released
Before you can assign a value schedule to a commodity contract, you must set its status to released.
● Retired
To prevent a value schedule from being assigned to any new contracts, you must set its status to retired.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double-click Maintain Value Schedule node.
3. In the DPQS Selection Screen, enter the details of the value schedule you want to release\retire.

4. Choose .

The system displays the List of Schedules that match your selection criteria.

5. In the List of Schedules screen area, select the schedule you want to release\retire and choose .
6. Choose the relevant option ( Release DPQS or Retire DPQS).

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3.1.1.8 Assigning Value Schedules to TSW Locations

Prerequisites

You are authorized to assign value schedules to TSW locations.

Context

You can assign a value schedule to a Trader's and Scheduler's Workbench (TSW) location. The TSW location
links a value schedule to a plant. Then, the system uses the plant to determine whether the schedule is
permissible in a contract.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Assign Value Schedule to TSW Location .
2. Double-click the Create DPQS Asgns node.

The Create Value Schedule Assignment screen appears.

3. Enter the required data and choose .

If you want to make this value schedule the default for the entered combination ( TSW Location and Mode
of Transport), select the Default checkbox.

If you want all of the subnodes of the selected TSW location to use the same default, select the
Automatically Accept Proposals checkbox. If the Automatically Accept Proposals checkbox is not selected
and the location has subnodes, the system displays the subnodes, and you can select the rows for which
the value schedule is default.
4. Save your entries.

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3.1.1.9 Simulating Value Schedules

Context

You can test a value schedule by viewing the values the system calculates for specified input parameters. You
enter a base quantity, base unit, base price, and characteristic values; then, the system calculates the adjusted
values.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Discount
Premium Quality Schedules Maintain Volume and Value Schedule .
2. Double-click the Maintain Value Schedule node.

3. Enter the Value Schedule Name and choose .

4. In the List of Schedules screen area, select a schedule and choose .

5. In the DPQS Characteristic screen area, choose the Simulate DPQS tab page.
6. Enter the required data.

7. Choose .

Results

For each characteristic, the system calculates the following values:

● Adjustment Value
● Net Adjusted Value
● Action (Accept or Reject)

3.2 Tolerance Schedule

Definition

A tolerance schedule defines the quantity above and below the contracted or delivery quantity that may be
applied towards the fulfillment of the contract. It enables the counterparties to define the acceptable overfill
and underfill delivery quantities, and the relevant price adjustments.

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Structure

A tolerance schedule contains the following information:

● Header Information
The header information includes an ID, a description, and a status.
● Schedule Lines
Typically, there is a minimum of one line for underfill and one line for overfill. Each schedule line is defined
using the following fields:
○ Direction (Underfills/Overfills)
Defines whether the schedule line is applicable for an underfill or an overfill.
○ Percentage From and Percentage To
Defines the valid percentage range.
○ Absolute Tolerance Value
Defines an absolute quantity that can be applied. This quantity must be in the same unit of measure as
the contract.
○ Tolerance is Higher/Lower of Percentage or Value
If both a percentage range and an absolute value are entered, this field states whether the higher or the
lower of the two values should be applied.
Note that if this value is used, only one overfill line and one underfill line can be entered for the
schedule.
○ Price Application (Flat/Tiered)
A price can be applied to an underfill/overfill quantity in the following ways:
○ Flat Pricing: a flat price is applied to the entire overfill/underfill quantity
○ Tiered Pricing: a different price is applied depending on the amount of overfill/underfill
○ Replacement Base Price
The overfill/underfill quantity can be settled at the contract price or a different negotiated price.
○ Weighted Average Price/Last Pricing Lot Consumed
This field applied to overfills. The price for an overfill quantity can be based on either a weighted
average of the prices in the pricing lots consumed by the delivery, or the price of the last consumed
pricing lot.

Integration

You define tolerance schedules as master data. When you create a new commodity contract, you must assign it
a tolerance schedule. The details of the tolerance schedule are copied into the contract and can then be
modified, if required. During execution of the contract, the system refers to the tolerance schedule captured
within the contract (not the tolerance schedule stored as master data) to determine how to price overfills or
underfills.

Example

Example 1: Tolerance Schedule Using Percentage Ranges

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Direction % Absolute Tolerance is Price Applica­ Replacement Weighted Avg.
Value Higher/Lower tion (Flat/ Base Price Price/Last Pric­
of % or Value Tiered) ing Lot Con­
sumed

Under 0 to 10 Flat tolerance Contract Price

pricing

Over 1 to 2 Flat tolerance Contract Price Last pricing lot

pricing consumed

Over >2 up to 7 Flat tolerance Negotiated

pricing Price

Over >7 up to 10 Tiered tolerance Negotiated

pricing Price

Example 2: Tolerance Schedule Using Percentage Ranges and Absolute Values

Direction % Absolute Value Tolerance is Price Applica­ Replacement Weighted Avg.

Higher/Lower tion (Flat/ Base Price Price/Last
of % or Value Tiered) Pricing Lot
Consumed

Under 0 to 5 4mt Lower Flat tolerance Contract Price

pricing

Over 0 to 10 5mt Higher Flat tolerance

pricing

More Information

Creating Tolerance Schedules [page 34]

Setting Status of Tolerance Schedules [page 35]

3.2.1 Creating Tolerance Schedules

Prerequisites

You are authorized to create tolerance schedules.

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Context

You define volume tolerance schedules as master data. Then, when you create a commodity contract, you
assign the appropriate tolerance schedule to it.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Maintain
Tolerance Schedule .
2. Double-click the Maintain Tolerance Schedule node.

3. In the List of Tolerance Schedules screen area, choose .

4. In the Header Information screen area, enter a Tolerance Sch. ID (Tolerance Schedule ID) and a description.

5. In the Maintain Tolerance Schedule Attributes screen area, choose .

A context menu appears.

6. Choose Add Overfill Tolerance to add a schedule line for an overfill, or Add Underfill Tolerance to add a
schedule line for an underfill.

A new line appears.

 Note

A tolerance schedule usually contains at least one line for underfills and one line for overfills. However,
you can enter multiple lines for underfills and multiple lines for overfills, if required.

7. Enter the required data.

8. Save your entries.

3.2.2 Setting Status of Tolerance Schedules

Context

A tolerance schedule can have one of the following statuses:

● Draft
The system defaults the status of new tolerance schedules to draft. This status indicates that you are still
working on the tolerance schedule and it is not ready for use in the system.
● Released
Before you can assign a tolerance schedule to a commodity contract, you must set its status to released.
● Retired

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 To prevent a tolerance schedule from being assigned to any new contracts, you must set its status to
retired.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Maintain
Tolerance Schedule .
2. Double-click the Maintain Tolerance Schedule node.

3. Enter the relevant Tolerance Sch. ID (Tolerance Schedule ID) and choose .

4. In the List of Tolerance Schedules screen area, select the relevant tolerance schedule and choose .
5. Choose the relevant option ( Release Tolerance or Retire Tolerance).

3.3 Valuation Point

Definition

You use valuation points to automatically determine the pricing approach for individual line items in a
commodity contract. You do this by specifying a valuation point on the Valuation Data tab page in the
commodity contract. Before you can use them, you must set them up in master data. The valuation point is an
optional field.

Use

To do this, on the SAP Easy Access screen, choose Agricultural Contract Management Master Data
Maintain Valuation Point . Here you can enter an ID and a description for your new valuation point, and set it
as active or inactive.

More Information

Pricing Approach [page 61]

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4 Contract Capture and Maintenance

Contract capture is the first step in the agricultural commodity contract process. During contract capture you
define the terms and conditions that govern the execution of the remaining steps in the contract process,
including call-off, load data capture, contract application, contract settlement, and contract closure. The
contract details captured include the counterparty, the contract period, the commodity, the quality terms, and
the tolerance terms. When you create a commodity contract, the system creates a pricing trading contract
(TC) in the background. The system uses the pricing TC along with a logistics TC to manage the contract
execution process. For more information about the structure and content of a commodity contract, see
Commodity Contract [page 37].

During the period of the contract, you can amend the contract terms. For example, you can extend the period
of the contract or increase the contract quantity. However, any contract amendments are subject to validation,
and if a call-off or application document exists for the contract, then certain amendments are not permitted.
For more information about creating and maintaining contracts, see Contract Management [page 42].

Note that contract capture and maintenance can also be done through a third party trading system. For more
information about this scenario, see Possible Third Party Integration [page 268].

4.1 Commodity Contract

Definition

A commodity contract is a document that represents an agreement between a buyer and a seller of a
commodity. It contains all of the terms and conditions that have been agreed between the buyer and the seller.

Use

The details in the commodity contract are used to match loads to contracts during contract application and to
calculate financial settlements.

The system supports the following contract types:

● Third Party Purchase

● Third Party Sale
● Intracompany
● Intercompany
● Spot Purchase
● Commingled Stock
● Washout (and the Circle variation)

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Structure

A commodity contract is structured as follows:

● Contract Header
The contract header contains details that are relevant to the entire contract, including the trade
counterparty, the external number, and the payment terms.
● Line Item
A contract line item contains information about the commodity such as the batch, plant, quantity, and
order unit.
● Commodity Item
A commodity item is an extension of the contract line item, and it contains additional information that is
specifically required for the management of an agricultural commodity contract. This information includes
the following details:
○ Acceptable quality terms and associated pricing adjustments (see Contract DPQS Data [page 38])
○ Tolerances for overfills and underfills (see Contract Tolerances [page 39])
○ Additional logistics options ( optionalities) (see Contract Optionalities [page 40])
○ Associated related trades (see Contract Related Trades [page 41])

4.1.1 Contract DPQS Data

Use

When you create a commodity contract, you must assign a discount premium quality schedule (DPQS) to it. A
DPQS includes a value schedule, a volume schedule, and a material schedule. However, you only need to assign
a value schedule to a commodity contract, as each value schedule already has an associated volume schedule
and material schedule.

Prerequisites

You have defined DPQS master data. For more information, see Creation of Discount Premium Quality
Schedules [page 17].

Activities

You assign a DPQS to a commodity contract on the DPQS tab page for the commodity item. The system also
provides the following options:

● Timing
The Timing option determines when, during the execution of the contract, the system applies the DPQS
(for example, at contract, at load, or at discharge).

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● Schedule at Unload Location
If you select the Schdl at Unload Loc (Schedule at Unload Location) checkbox, the system uses the default
DPQS for the discharge location, and you do not need to enter a Schedule Name. For example, this option
may be used in cases where the contract has more than one discharge location. The system determines
the relevant schedule for the discharge location by using the TSW location assigned to the value schedule.
● Override Base Schedule
The details of the selected value schedule are displayed on the DPQS tab page. By default, this information
is display only. However, if you select the Override checkbox, you can choose to omit characteristics or
change the value ranges for characteristics. However, you cannot add new characteristics.

4.1.2 Contract Tolerances

Use

When you create a commodity contract you assign a tolerance schedule to it. You must also specify when,
during the execution of the contract, that tolerance schedule should be applied.

Prerequisites

You have defined tolerance schedules. For more information, see Creating Tolerance Schedules [page 34].

Activities

You assign a tolerance schedule to a commodity contract on the Tolerances tab page for the commodity item.
The details of the tolerance schedule are copied from master data into the contract. You can then modify the
tolerance schedule details, if required. You must also specify the Tolerance Type. The system uses the Tolerance
Type to determine how and when to apply the tolerance schedule rules to the contract. The following options
are provided:

● Per Delivery
Indicates that the tolerance schedule rules apply to the quantity delivered in each load. If you select this
tolerance type, you must also enter the expected quantity for each load, so that the actual load quantity
can be evaluated against the expected load quantity.
● Per Delivery Period
Indicates that the tolerance schedule rules apply to the total quantity delivered within a given delivery
period.
● Per Contract
Indicates that the tolerance schedule rules apply to all the contract line items for a given commodity.

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4.1.3 Contract Optionalities

Use

Optionally, you can maintain additional logistics options along with the discounts or premiums to be applied for
those options. For example, you can specify a premium for a particular discharge location or a particular mode
of transport. These additional logistics options are called optionalities.

Prerequisites

You have configured the optionality categories in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Basic Settings Optionality Maintain Optionality
Customizing .

Features

● Optionality Categories
The solution is delivered with a set of predefined optionality categories. For example, these categories
include Discharge Location, Incoterms, Mode of Transport, and Means of Transport.
● Optionality Types
The Optionality Type determines how the system evaluates the optionalities during call-off, load data
capture, and contract application. The following options are provided:
○ Explicit
Explicit optionalities require a quantity to be declared before contract application is permitted for the
quantity. This means that call-off must occur and values must be entered for the optionality
categories. The contract cannot be applied to any load without a call-off.
○ Implicit
Call-off is not required for implicit optionalities. However, contract application must match one of the
defined optionalities for all categories where a value has been captured for the load (if no value is
captured for the load, the category is ignored for matching purposes). Therefore, the contract can be
applied to any load for which the optionality values entered in load data capture match the optionality
values defined in the contract.
○ Any
If you define optionalities as any, the contract can be applied to any load irrespective of the optionality
values entered. However, for settlement, if a category value matches the load, the system applies the
relevant premium or discount.

Activities

You define optionalities on the Additional Contract Conditions tab page for a commodity item.

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Optionally, you can specify default values for the Mode of Transport, Means of Transport, Crop Season ID, and
Source Location. Then, you enter further optionalities in the Additional Optionality Values screen area. You
define each optionality by entering the following information:

● Optionality Category
● Value Type
● Option Value
● Premium or Discount Details

For step-by-step instructions for entering optionalities, see Entering Optionalities [page 49].

4.1.4 Contract Related Trades

Use

A commodity contract may be related to other contracts, for example, for pricing purposes ( futures
contracts), for intercompany or intracompany trades, or for washouts. This function enables you to view the
related trades for a contract and also to add and delete related trades.

Prerequisites

You have configured related trade types in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Basic Settings Configure Related Trade Types .

Features

When you create an intercompany or an intracompany contract, the system automatically creates a mirror
contract (for a purchase contract, the system creates the corresponding sales contract, and vice versa). The
system displays the details of the related mirror contract on the Related Trades tab page of the intercompany
or intracompany contract.

You can also manually add or remove a related trade.

Activities

You enter related trades for a commodity contract on the Related Trades tab page for the commodity item. For
more information, see Maintaining Related Trades [page 50].

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4.2 Contract Management

Use

SAP Agricultural Contract Management provides enhanced contract capture screens that enable you to capture
and maintain all of the complex terms and conditions required to manage agricultural commodity contracts.

In an alternative implementation scenario, commodity contracts can be captured and maintained in a third
party trading system. For more information, see Possible Third Party Integration [page 268].

Activities

● Create Contracts
To create a new commodity contract, on the SAP Easy Access screen choose Agricultural Contract
Management Contract Management Commodity Contract Create . The commodity contract screen
has the following levels:
○ Header Data
When you first open the commodity contract screen, the contract header data is displayed. To navigate
back to this level from the line item or commodity item level, choose .
○ Line Item
To navigate to the line item level, choose Overview.
○ Commodity Item
To navigate to the commodity item level, first navigate to the line item level, and then on the Item
Overview tab page double click the line item number.
For more information about the steps involved in creating a commodity contract, see Contract Capture
[page 43].
● Change Contracts
To amend an existing contract, on the SAP Easy Access screen choose Agricultural Contract
Management Contract Management Commodity Contract Change .
When you open an existing contract in change mode, the screen is similar to the screen used to create new
contracts. You can edit the information in the contract with some restrictions if follow-on documents, such
as sales orders, purchase orders, goods receipts, and so on, exist for the contract. You can display follow-
on documents by choosing on the Commodity Items tab page. Then, you can display the document
details by choosing the relevant document in the Trading Solution Document Flow screen.
For more information about changes to contracts, see Contract Amendments [page 51] and Cancellation
[page 52].
● Display Contracts
To view the details of an existing contract, on the SAP Easy Access screen choose Agricultural Contract
Management Contract Management Commodity Contract Display . This option opens a display-
only version of the commodity contract screen.
For step-by-step instructions for displaying commodity item details, such as quantities and pricing
aspects, see Displaying Commodity Item Details [page 54].

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4.2.1 Contract Capture

Use

During contract capture, you define all of the terms and conditions that govern the execution of the contract.
The system requires you to enter certain minimum information before you can save a new contract. For
example, you must specify the tolerance schedule and discount premium quality schedule (DPQS) data.
However, it is not mandatory to enter the pricing aspects before you save a new contract.

Prerequisites

● You have created tolerance schedules (see Creating Tolerance Schedules [page 34]).
● You have created DPQSs (see Creation of Discount Premium Quality Schedules [page 17]).

Process

1. You create a new commodity contract (see Creating Commodity Contracts [page 44]).
You must enter the following minimum information:
○ Contract header data
○ Contract item data
○ Commodity Item data
○ Tolerances
○ DPQS data
2. You enter the pricing aspects (see Commodity Pricing Engine [page 56]).
3. Optionally, you can override the default DPQS data (see Overriding DPQS Data [page 47]).
4. Optionally, you can define additional logistics options ( optionalities) (see Entering Optionalities [page
49]).
5. Optionally, you can create a pre-payment request (see Creating Pre-Payment Requests [page 50]).
6. Optionally, you can define related trades (see Maintaining Related Trades [page 50]).

Result

When you save a new commodity contract, the system creates a pricing trading contract document and the
tables Versioned Logistics Pricing (CM_VLOGP) and (

 Example

CM_VLOGP_KONVD

) are updated with trading contract data.This contract is the first document that appears in the Document Flow.

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For intercompany and intracompany contracts, the system automatically creates a mirror contract. For
example, when you save a new intercompany sales side contract, the system also creates a corresponding
intercompany purchase side contract.

4.2.1.1 Creating Commodity Contracts

Prerequisites

● You have created tolerance schedules (see Creating Tolerance Schedules [page 34]).
● You have created discount premium quality schedules (DPQS) (see Creation of Discount Premium Quality
Schedules [page 17]).

Context

Commodity contracts can be highly complex and contain many terms and conditions. Therefore, this
procedure only describes how to enter the minimum information required to save a new contract.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Create .
2. Enter the Contract Type and press Enter .

If this is the first contract you have created, the system displays the Organizational Data dialog. Enter the
required data and choose . The system displays the contract header details.
3. On the contract header screen, enter the contract counterparty ( Vendor for purchase side contracts or
Sold-to Party for sales side contracts) and External Number, and then press Enter .

When you save a contract, the system automatically generates a unique trading contract number, however,
you must also enter a user-defined external number. The external number is alphanumeric, therefore, you
can enter something more descriptive than the contract number.
4. Choose Overview.
5. On the Item Overview tab page, enter the Material, Plant, Quantity Ordered, and Order Unit, and then press
Enter .

6. In the Item Number column, double click the line item number.

The commodity item details appear.

7. Choose the Commodity Items tab page.

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8. Choose and enter the required data.

 Note

○ You can only create one commodity item line for a particular line item.
○ The Commodity Item Quantity you enter must equal the line item quantity.
○ The validity date range is mandatory ( Date From and Date To).

9. Choose the DPQS tab page and enter the required data.
10. Choose the Tolerance tab page and enter the required data.
11. Save your entries.

Next Steps

Overriding DPQS Data [page 47]

Entering Optionalities [page 49]

Maintaining Related Contracts [page 50]

4.2.1.2 Copying Commodity Contracts

Prerequisites

● If you want to create a contract as a copy of a template, you have defined templates as an available
contract type in Customizing for Agricultural Contract Management under Basic Settings Maintain
Contract Type Determination .
● You have created a contract or template that you want to use as a source contract.
● You have activated the Business Add-In implementation /ACCGO/CMN_IM_TC. You can do this in
Customizing for Agricultural Contract Management under Enhancements Using Business Add-Ins
Contract Management Commodity Contracts Contract Copy Implementation: BAdI for Contract
Copy .

Context

You can create a new commodity contract as a copy of an existing one by using the Create with Reference
feature in contract creation. When you do this, ACM-specific data such as valuation points, tolerances, and
DQPS is copied from the original contract, in addition to the data that is always copied by using Create with

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Reference, such as vendor and commodity item data. Pricing data and transactional data, such as the Final
Delivery indicator, is not copied.

You can also use the Create with Reference feature to create a commodity contract as a copy of a template. A
template is a type of contract that can be created and saved without the information that would usually be
mandatory for a commodity contract, such as vendor or commodity item data.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Create .
2. Enter the required contract type of your target contract and choose Create with Reference.

If this is the first contract you have created, the system displays the Organizational Data dialog box. Enter
the required data and choose . The system displays the Create with Reference dialog box.
3. To create a contract as a copy of an existing contract, choose the Trading Contract tab, enter the number of
the existing contract, and choose Enter .

To create a contract as a copy of a template, choose the PreTrading Contract tab, enter the number of the
template, and choose Enter .

If you do not know the number of the existing contract or template, you can search for it in the External
Number field.

The system displays the Copy Item Data dialog box.

4. In this dialog box, you can copy the existing item data or make changes in each line item and then copy.
Make any required changes and choose Execute.

The system displays your newly created contract.

5. Enter any further required data, such as pricing information and commodity item start and end date, and
save the contract.

4.2.1.3 Approving Commodity Contracts

Prerequisites

● You have created a trading contract.

● You have the necessary authorization to approve the trading contract.

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Context

A trading contract has to be duly approved by an authorized user. It is important that a contract is validated
and approved before it is used in the following processes:

● Release of LDC (with Contract Reference)

● Call-off (in Purchase Order and Sales Order)
● Linking to the Application Document (Contract Application process)

For this purpose, a new tab screen has been added at the Contract Header level which consists of an Approval
indicator, Approver Name and Approval Date.

 Note

There is a provision to set or reset the approval flag by using a Business Add-in (BAdI) implementation.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Change .
2. Enter the contract number and choose Find.
3. Choose the Approval tab in the Contract Header screen.
4. Select the Approval Indicator check box.

Once the indicator is checked, the name of the Approver and the date of Approval gets populated in the
respective fields.

5. Choose .

4.2.1.4 Overriding DPQS Data

Prerequisites

You have created a commodity contract and assigned a DPQS to it.

Context

When you create a commodity contract, you assign a discount premium quality schedule (DPQS) to it.
Optionally, you can override the DPQS by omitting particular characteristics or modifying the value ranges for
characteristics.

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Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Change .
2. Enter the contract number and choose Find.
3. Choose Overview.
4. Double-click the line item number in the Item Number column.

The commodity item details appear.

5. Choose the DPQS tab page.

The details of the assigned DPQS are displayed on the Characteristics Details and Range Details tab pages.
The details are display-only.
6. Select the Override check box and press Enter .

The details on the Characteristics Details and Range Details tab pages become enabled for editing.
7. To omit a characteristic, select the relevant characteristic on the Characteristics Details tab page and then
choose .

 Note

It is not possible to add new characteristics to the DPQS.

8. To view the value ranges for a particular characteristic, double-click the relevant characteristic on the
Characteristics Details tab page.

The value ranges are displayed on the Range Details tab page. You can modify the details of the existing
ranges. You can also add a new row by choosing , or delete a row by choosing .
9. Save your changes.

Results

The system saves the overrides you enter for the contract, and during the contract execution, the system
applies the unchanged parts of the base (master data) DPQS along with the additional overrides you enter.

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4.2.1.5 Entering Optionalities

Prerequisites

You have configured the optionality categories in Customizing for Logistics - General under Global Trade
Management Agricultural Contract Management Basic Settings Optionality Maintain Optionality
Customizing .

Context

Optionally, you can define additional logistics options ( optionalities) along with the discounts or premiums to
be applied for those options.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Change .
2. Enter the contract number and choose Find.
3. Choose Overview.
4. Double-click the line item number in the Item Number column.

The commodity item details appear.

5. Choose the Additional Contract Conditions tab page.
6. Enter the Optionality Type, Opt. Decl. by Date (Date by Which Option Must be Declared), and Buyer/Seller
Opt. (Buyer or Seller Option).
7. Optionally, you can enter default values for the Mode of Transport, Means of Transport, Crop Season ID,
and Source Location.
8. Press Enter .

Your default values (if entered) are displayed in the Additional Optionality Values screen area.

9. To add new optionality values, choose , and then enter the required data. To delete an optionality value,
select the row, and then choose .
10. Save your entries.

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4.2.1.6 Creating Pre-Payment Requests

Context

You use this procedure to enter pre-payment data for a contract and to make an initial payment for the order.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Manage Pre-Payment Requests .
2. Enter the contract number.
3. Enter the required payment terms.

4. Choose .

The pre-payment data is defaulted for the contract.

5. Save your entries.

4.2.1.7 Maintaining Related Trades

Context

A commodity contract can be related to other contracts (for example, a washout contract), and these related
trades are listed on the Related Trades tab page for the commodity item. You can add a related trade, delete a
related trade, or display a related contract directly from the Related Trades tab page.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Display .
2. Enter the contract number and choose Find.
3. Choose Overview.
4. Double-click the line item number in the Item Number column.

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 The commodity item details appear.
5. Choose the Related Trades tab page.

The related trades are listed (if any exist).

6. You can perform the following actions:

Action Navigation

Add a related trade Choose .

Delete a related trade Select the relevant row, and then choose .

Display a related trade In the Display TC column of the relevant related trade, choose .

4.2.2 Contract Amendments

Use

During the term of a contract, you can amend the contract conditions and terms. Some amendments, such as
changes to pricing, do not affect the contract execution. However, other amendments, such as changes to the
delivery period or the delivery period quantity, do affect the contract execution. The system validates any
amendments that affect the contract execution to ensure that the existing call-offs remain valid and that there
is a sufficient open quantity for the change.

Changes to tolerance schedules and discount premium quality schedules (DPQS) take effect for new contract
application and contract settlement processes. Any completed applications and settlements remain
unchanged. If you wish to change the completed application and settlement documents, you must reverse the
relevant documents and then re-create them.

If your implementation scenario uses a third party trading system for contract capture, then amendments to
contracts must be performed in the third party trading system.

The following constraints apply to contract amendments:

● If an application document exists for the contract, then you cannot change the settlement currency of the
contract.
● If a call-off exists for the contract, then you cannot change the tolerance types or the optionality header
and details data. However, you can add new optionality values for existing categories.
● The commodity line item quantity must always be equal to the contract item quantity.

Activities

To amend an existing contract, on the SAP Easy Access screen choose Agricultural Contract Management
Contract Management Commodity Contract Change .

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4.2.3 Storage Agreements

Use

Storage agreements are contracts between a company and a vendor outlining the terms and conditions under
which goods are stored. A storage agreement defines the following:

● Vendor: Agreements can be generic or specific. A generic agreement is public and any vendor can use it. A
specific agreement is restricted to a specific counterparty and only that partner can use it.
● Materials: Agreements define which materials are valid for the agreement. The materials valid for the
agreement are defined by the DPQS material schedule list.
● Plant/Storage Locations: Agreements define which plants and storage locations can use the agreement.
Locations are represented as a single plant and storage location or as a TSW location hierarchy,
representing several plants and storage locations.
● DPQS: Agreements are linked to a DPQS schedule that is used to calculate net weights.
● Rules: Agreements define the rules for charging a vendor for storage. The agreement also defines the
number of days for which storage is free of charge, and how many days the rates for the agreement are
locked (storage fees will not change for that number of days). You can also define if the agreement uses net
or gross weights during settlement and if the storage start and end dates are used during settlement.
● Storage Fees: You can assign storage fees to a storage agreement and define the pricing conditions used
during storage settlement.
● Storage Events: You can assign possible storage events to a storage agreement and define how events are
charged during a storage settlement.

More Information

For more information about assigning storage fees to a storage agreement, see Storage Fees [page 259].

4.2.4 Cancellation

Use

During the term of a contract, you can perform a cancellation to close all or part of the open quantity on a
contract. Commodity contracts specify very large contract quantities and are rarely filled exactly. Therefore,
cancellations can occur for various reasons including underfills, washouts, and agreed reductions in the
contract quantity.

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Features

When you enter a cancellation, the system performs validation checks before saving the cancellation. The
system validates the available open quantity. The system also checks the current call-offs and prepayments for
the contract to ensure that the specified cancellation quantity is available.

If you cancel a quantity of an intercompany or intracompany contract, the system automatically creates the
cancellation in the corresponding mirror contract.

The canceled quantity must be settled, although there is no related goods movement. Canceled quantities may
be settled at a different price to the established price for the contract, and there may also be a cancellation fee.
For more information, see Non-Standard Settlement [page 238].

Activities

You enter cancellations for a commodity contract on the Cancellations tab page for the commodity item. For
more information, see Entering Cancellations [page 53].

4.2.4.1 Entering Cancellations

Context

You can cancel all or part of the open quantity on a commodity contract.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Change .
2. Enter the contract number and choose Find.
3. Choose Overview.
4. Double-click the line item number in the Item Number column.

The commodity item details appear.

5. Choose the Cancellation tab page.
6. In the Event Information screen area, enter the Cancellation Type, Cancellation Code, and Cancellation Date.
7. In the Event Details screen area, enter the To be Cancelled Quantity, the Cancellation Fee, and the pricing
conditions.

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8. Save your entries.

Before saving the cancellation, the system performs validation checks. For example, the system checks the
open quantity, call-offs, and prepayments for the contract. If the cancellation is permitted, your changes
are saved, otherwise an error message is displayed.

4.2.5 Displaying Commodity Item Details

Context

From the Commodity Items screen area for a commodity contract, you can display the following information:

● Quantities
You can display a breakdown of the quantity for each quantity type (for example, Consumed Quantity,
Available to Call-off Quantity, Underfill Quantity, and so on).
● Pricing Aspects
You can display the futures and basis condition amounts and values.
● Assignments
You can display assignment partners, such as an order or application document, along with the assigned
quantities.
● Document Flow
You can display a detailed Trading Solution Document Flow, which lists all of the documents for the contract
in a hierarchy. The information displayed includes the document type and number, the ID of the user who
created the document, the creation date, and the document status.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Display .
2. Enter the number of the relevant trading contract and choose Find.

The trading contract screen appears.

3. Choose Overview.

4. On the Item Overview tab page, in the Commodity Items column, choose .

The Commodity Items screen area appears.

5. Select the commodity item, and then choose the relevant option as follows:

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 Action Navigation

Display Quantities

Display Pricing Aspects

Display Assignments To display the assignments, choose , then select an item and choose .

Display Document Flow

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5 Integration with SAP Commodity
Management

Use

SAP Agricultural Contract Management (ACM) is integrated with SAP Commodity Management EHP 08 SP05
for ERP 6.0. This integration allows you to use various SAP CM functions for the commodities processed based
on the SAP ACM scenarios.

Integration

To enable the ACM-CM integration, activate the business function /ACCGO/BF_ACMCM_INT (switch /ACCGO/
SWITCH_ACM_CM).

More Information

● Commodity Pricing Engine [page 56]

● Exposure Management [page 64]

5.1 Commodity Pricing Engine

Use

Commodity Pricing Engine (CPE) is a tool for calculating the prices of commodities. It retrieves pricing
formulas in business documents and evaluates them to calculate final prices of commodities. The resulting
price is then transferred to the condition types that are used in commodity pricing.

CPE enhances pricing by using complex rules to calculate a condition rate and a condition value. These rules
define how market data from exchanges or other providers are considered.

When a contract is created, pricing must be established for a portion of a line item quantity or for multiple
components. Pricing is not required to be established to save a contract or to initiate logistics against a
contract. For more information, see Provisional Pricing [page 62].

The pricing components include the pricing conditions and the CPE terms. The system can be configured to
establish pricing in various combinations of futures and basis prices. For more information, see Pricing
Approach [page 61].

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Features

● Pricing Views
This feature offers a new view along with the standard CPE views, which helps you to create price, set price,
and visualize price in a single screen. For more information, see ACM Pricing View [page 58].
● Pricing Statuses
If either the basis or the futures price is not established, then the price is only partially defined. If some
portion of a price has not been established for a component or a quantity, you can use provisional pricing.
For more information, see Pricing Status [page 61] and Provisional Pricing [page 62].
● De-pricing
When you de-price a commodity, you temporarily remove the pricing of CPE condition quantity and later
reprice that same component with different values. Such price changes can occur at any point until final
settlement because during final settlement, the pricing aspect is locked. In the ACM Pricing View, de-
pricing is referred to as lifting the price.

More Information

● Uses of Pricing [page 57]

● ACM Pricing View [page 58]
● Foreign Exchange Rates in ACM Pricing [page 59]
● Pricing Condition Types [page 59]
● Pricing Approach [page 61]
● Pricing Status [page 61]
● Provisional Pricing [page 62]

5.1.1 Uses of Pricing

Use

Pricing is established for a contract at the time of contract creation. The system retrieves this pricing to make
the final settlement between the counter parties. If there is no pricing defined for a quantity on the lot, the
system determines a provisional price for that portion of the quantity to settle a contract provisionally. You
cannot make the final settlement unless all the pricing components are defined.

Prerequisites

You have used the ACM Pricing View where the market price is retrieved.

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Features

● Provisional Settlement
When no pricing is established on a contract, the system determines a provisional price for the contract
using the CPE view. The contract is provisionally settled using this price. For more information, see
Settlement Pricing [page 218].
● Final Settlement
When contracts are fully priced, a final settlement is done. For contracts that are partially priced, you can
maintain the pricing on the contract to make it fully priced, which can be finally settled. Otherwise, it is only
a provisional settlement.

5.1.2 ACM Pricing View

Definition

This feature offers an ACM-specific view in addition to the standard CPE views, enabling you to set and
visualize price fixations on one screen, and manage pricing operations efficiently.

Structure

This tool offers a set of standard pricing views:

● Pricing Elements: Table

● Pricing Elements: Tree
● CPE Formulae and Terms
● With Adjusted Quantities

Additionally, an ACM Pricing View is available to fulfill the agricultural market requirements:

● ACM Pricing View

To access the ACM Pricing View, navigate to the Conditions tab in the contract, where the following fields help
you create a new pricing fixation:

● View: Select the required view from the dropdown list.

● Quantity: Specify the contract quantity for the line item.
● Net: View the net amount, which is calculated based on the price that was set in the condition types
considering provisional prices and fixed prices.
● Error Log: Choose this button to open a dialog box and view information about errors related to the
Conditions tab, pricing procedure, determination of pricing, or any missing Customizing for CPE.
● Pricing Approach: Displays the available pricing approaches for this contract, as specified in Customizing.
The pricing approach that applies to this contract is determined by pricing conditions. You can specify the
valuation point on the Valuation Data tab and it can also be used in the standard condition determination
process. This field is display only. For more information, see Pricing Approach [page 61].
● Price a Quantity: Choose this button to display a dialog box in which you can set price fixations and foreign
exchange rates for each pricing component in a contract line item.

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 The available fields in this dialog box are displayed dynamically, depending on the pricing approach that
has been set for this line item. For example, if a flat pricing approach has been specified, the futures and
basis pricing components are calculated automatically, but if a componentized approach such as futures
and basis has been specified, you price the components separately.

More Information

Foreign Exchange Rates in ACM Pricing [page 59]

5.1.2.1 Foreign Exchange Rates in ACM Pricing

Use

Pricing in ACM supports multiple currencies per trading scenario, including company code currency, market
currency from CPE, and contract currency. You can price the futures and basis components of a price in
different market currencies. You can set a foreign exchange (FX) rate for each pricing component before,
during, or after pricing the component itself.

If your trading scenario involves multiple currencies, you must fix an FX rate for all pricing components before
you can carry out final settlement.

Features

You can carry out the following tasks during pricing:

● Fix the FX rate. This stabilizes the FX rate so that all parties to the contract can use their own currencies
without inconsistencies in pricing being caused by fluctuating FX rates.
● Lift the FX rate or fix a new FX rate for the entire quantity of a contract line item, or for partial quantities.
● View a provisional FX rate. This FX rate is retrieved directly from the market by CPE.

5.1.3 Pricing Condition Types

Use

A condition type is a representation in the system of some aspect of your daily pricing activities. You can define
a different condition type for each kind of price that occurs in your business transactions, such as futures and
basis pricing components.

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  Note

To ensure consistent pricing in ACM and Commodity Management, you must maintain a mapping between
CPE condition types and pricing aspect conditions. You do this in Customizing for Agricultural Contract
Management under ACM-CM Integration Map CPE Condition Types to Pricing Lot Condition Types

Example

You configure the following pricing condition types and map them to pricing lot condition types in Customizing:

● ZAW0: Price Futures

● ZAW1: Price Basis
● ZAWP: Basis Port Spread

5.1.3.1 Pricing Types

Use

You can configure the system to establish the pricing of a contract. For example, it can be futures and ratio, or
index and ratio. You can perform final settlement on a contract only when some pricing components are
defined.

With or without these prices, the following pricing types are derived:

● Fully priced: when both futures price and basis price are established
● Partially priced: when no futures price is established or when no basis price is established, which means
only one pricing component is established
● Not priced: when no pricing is established

Features

The system retrieves the provisional price for a quantity based on the pricing type, whether it is Not priced or
Partially priced.

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5.1.4 Pricing Approach

Use

You can configure the system to establish the pricing approach of a contract. The pricing approach can
encompass various combinations of futures components, basis components, indexes, and ratios. You can also
simply use a flat pricing approach.

You can perform final settlement on a contract only when you have priced all the components that are specified
in the pricing approach. For example, if your pricing approach is futures and basis, you cannot perform final
settlement on a contract until you have specified a futures price and a basis price for each contract line item,
and, if you are working with multiple currencies, an exchange rate.

Prerequisites

You have set up valuation points. For more information, see Valuation Point [page 36].

More Information

On the SAP Easy Access screen, choose Agricultural Contract Management Master Data Maintain Pricing
Approach .

5.1.5 Pricing Status

The system derives one of the following pricing statuses for each line item:

● No price established (NPE)

Neither the futures component nor the basis component of the commodity price is established. For goods
that do not have a componentized pricing approach, the pricing is not established.

 Note

If you want to delete a price fixation in the ACM Pricing View, its status must be NPE.

● No futures established (NFE)

Only the basis component is priced. The price of the futures component is not yet established.
● No basis established (NBE)
Only the futures component is priced. The price of the basis component is not yet established.
● Flat
All components are fully priced.

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5.1.6 Provisional Pricing

Use

Provisional pricing is defined for a commodity when no pricing is established for a contract quantity. In such
cases, final settlement is not permitted.

Provisional price is substituted for those components and quantities for which there is no pricing in the
contract. This substitution does not affect the existing pricing lot distributions. Provisional pricing is retrieved
for the portion of the quantity that is not priced in a price fixation in CPE.

Once you assign the missing price, you can carry out final settlement of the contract.

Provisional pricing is retrieved directly from the market using the CPE.

Prerequisites

You have maintained commodity curves in CPE, in order to retrieve accurate provisional prices.

Features

With CPE, the system permits the usage of different DCS (Derivative Contract Specification)-based commodity
curves that leverage market prices in CPE and, as a result, for provisional price in settlement.

More Information

● Determination of Provisional Pricing [page 62]

● Calculation of Provisional Pricing [page 63]

5.1.6.1 Determination of Provisional Pricing

Use

You use provisional pricing to determine pricing for the portion of the quantity that has no pricing established.
The system fetches the input from the market price using the CPE view and then determines the provisional
pricing.

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Prerequisites

You have priced using ACM Pricing View where the market price is retrieved.

Activities

● You search for the relevant inputs in the ACM Pricing View to determine provisional pricing.
● The system uses the decision tables to determine the futures price, basis price, location adjustment price,
and material adjustment prices.

5.1.6.2 Calculation of Provisional Pricing

Use

You use this function to calculate provisional pricing [page 62] when the contract is partially priced or is not
priced.

Prerequisites

You have used the ACM Pricing View where the market price is retrieved.

Activities

Based on the pricing types in a contract, the system calculates the provisional pricing differently as shown in
the following expressions:

● When the futures and basis prices are both determined:

Provisional price = (futures price + basis price) * load quantity
● When you want to use location and material adjustment prices:
Provisional price = (futures price + basis price + location adjustment price +
material adjustment price) * load quantity

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Example

For no pricing established contracts, if futures price = 3 USD per LB, basis price = 2 USD per
LB, and load quantity = 100 LB, then the price calculation is as follows:

Total calculated provisional price = (3 + 2) * 100 = 500 USD and 5 USD per LB

5.1.7 Pricing Distribution

Use

The pricing lots are distributed to the load based on the pricing distribution rules maintained in the Business
Rules Framework (BRFplus). For the final shipment settlement process, the pricing lots that are already
distributed to other loads can be undistributed and redistributed to the application document line or subline
that is settled.

Prerequisites

You have defined the rules for pricing distribution in BRFplus.

Activities

● If there is only one priced lot on the contract and its quantity is greater than the load quantity, the system
uses the contract price for settlement.
● If there are multiple pricing lots, the system calculates the pricing for the load based on the distribution
rules established in BRFplus.

5.2 Exposure Management

Use

In agricultural market risk management, exposure includes all future payments from a financial position,
depending on the risk factors that affect the various types of produce.

Companies that trade agricultural commodities must constantly evaluate the financial risks associated with
their commodity positions. In addition, they require a 'physical risk position' view that is more detailed than the
pure financial risk view. These evaluations are typically conducted through reporting and ad hoc monitoring of
the positions.

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More Information

● Creation of Raw Exposures [page 65]

● Exposures Lifecycle [page 67]
● Risk Reporting [page 68]
● Risk Profiles [page 66]

5.2.1 Creation of Raw Exposures

Creating raw exposures.

Use

Exposures are created whenever an application document is assigned or reassigned to a contract. An

application document can be assigned to more than one contract. By using Commodity Pricing Engine (CPE),
exposure creation is automatically triggered by SAP Global Trade Management (GTM) contract per GTM-CM
integration default.

The standard position report utilizes raw exposures. Hence, SAP Agricultural Contract Management (ACM)
processes exposure information at necessary points in the lifecycle of scenarios. This information includes
updating raw exposures when the documents are altered.

 Note

No updates are made to the existing exposures; every time a contract is assigned, the contract exposure is
re-created to represent the new scenario generating a new version of the same exposure.

Features

The following modes are available for creating raw exposures:

● Automatic Mode
Automatic Mode is also known as Real Time Mode. In this mode exposures are created automatically during
the various ACM scenarios by the system itself.
● Manual Mode
Manual Mode is used only when exposures are not created in automatic or real time mode. For example,
when the real time creation of raw exposure fails due to any reason (for example, object lock, missing
Customizing data and so on), the user can correct the error and regenerate the raw exposure using the
report Reconciliation of Exposures.
You can call up this report using the transaction /ACCGO/EXP_RECONCIL and regenerate Application and
Correction Stock exposures manually.
For GTM contract exposures, you can use the standard transaction LITRMS.

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  Note

The modes are not mutually exclusive and can be used in tandem.

Activities

You can create or check the various exposures in one of the following ways:

● Use transaction FTREX_LG1, which calls up Display Log for Logistics Integration, to see the details of the
newly created raw exposures once you create and save a contract, or
● Use transaction FTREX1, which calls up Raw Exposure Maintenance, to check the raw exposure document
that was created. Enter the Raw Exposure ID in the Raw Exposures: Initial Screen. In this transaction, you
can see the raw exposure line items for each type of pricing. You can also see the sub raw exposure items
and whether they are or , or
● Use transaction RSRT to check the raw exposure by entering a query in the Query Monitor.

5.2.2 Risk Profiles

Use

You can assign risk profiles in Customizing to specific combinations of company codes and physical
commodities. These risk profiles are then available for use when you are creating raw exposures for these
particular combinations.

In addition to the standard risk profiles available in Customizing, you can also assign the ACM risk profile 999 to
combinations of company codes and commodities. This risk profile is evaluated by the system during the
creation of raw exposures. Risk reporting for ACM is carried out based on this risk profile.

More Information

● Customizing for Financial Supply Chain Management under Treasury and Risk Management
Transaction Manager General Settings Exposure Management 2.0 Reporting of Commodity Price
Exposures Risk Profiles for Commodity Price Exposures Assign Risk Profiles for Commodity Price
Exposures .
● Creation of Raw Exposures [page 65]
● Risk Reporting [page 68]

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5.2.3 Exposures Lifecycle

Use

The exposure lifecycle specifies the sequence in which the raw exposures are created. The lifecycle represents
the development of a risk within the business process. Several relevant raw exposures are created at different
points of the lifecycle.

Features

Following are the different types of exposures created during the lifecycle:

● Trading Contract Exposure

Trading contract exposures are created by the standard GTM integration. A contract exposure is created
when a contract is created and posted.

 Note

No updates are made to existing exposures; every time a contract is assigned, the contract exposure is
re-created to represent the new scenario, generating a new version of the same raw exposure.

● Application Exposure
Application exposures are created whenever an application document is assigned or reassigned to a
contract. An application document can be assigned to more than one contract. It reflects the quantity you
receive as the logistically adjusted quantity (LAQ). The LAQ becomes the relevant risk quantity presented
in the application exposure.
Application document reversal makes the correct adjustments to all exposures, reflecting the reversal of a
specific process within the system. If an application document is reversed, its application exposure
quantities must be zero. You must reverse the quantities to the contract, and adjust stock correction
exposures to offset the stock exposure fully.
After revenue recognition of a sales or purchase cargo, the application exposure must change to a new
invoicing status. This status change is needed because until revenue recognition is done, application
exposure quantities offset book inventory quantities in the position report. After this status change, the
position report no longer considers the application exposure quantities, which are then reported as book
inventory.
● Material Stock Exposure
Material Stock exposure is created whenever a goods movement (GR or GI) is posted in the system. Stock
exposures are created automatically during OF execution. In case a goods movement is cancelled (for
example, transaction MSBST), material stock exposure is reverted simultaneously.
● Material Stock Adjustment Exposure
Whenever there is a discrepancy between LAQ and delivered quantity (GR or GI quantity), besides material
stock exposure creation, there is a stock adjustment exposure which represents the residual quantity due
to DPQS adjustments.

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Example

A third party purchase scenario has the following data:

● Goods Receipt quantity: 100 TO

● LAQ quantity: 95 TO

Therefore, in terms of risk exposures, the following is expected:

● Material Stock exposure: 100 TO

● Application exposure: 95 TO
● Correction stock exposure: 5 TO

Stock exposures, corrected by stock adjustment exposures, represent the book inventory quantities in the
position report. A book inventory quantity represents a quantity that is no longer associated with a risk in the
contract. When application documents are reversed, it triggers the application exposure reversal fully offsetting
the stock adjustment exposure.

5.2.4 Risk Reporting

Use

Companies that trade agricultural commodities must constantly evaluate the financial risks associated with
their commodity positions. In addition, they require a 'physical risk position' view that is more detailed than the
pure financial risk view. These evaluations are typically conducted through reporting and ad hoc monitoring of
the positions.

This risk assessment is possible in ACM scenarios with ACM and CM (Commodity Management) integration.

A risk report (or position report) displays commodity quantities that represent a risk for the company. To
display the correct quantities in the risk report, the risk relevant processes trigger exposure creation accurately
and with precise timing. By using CPE, exposure creation is automatically triggered by GTM contract per GTM-
CM integration default.

Risk reporting must fulfill the following tasks:

● Provide a risk view on the financial (commodity price) risk associated with the pricing of physical contracts
or positions (for example, stock) and financial contracts that are taken to offset these price risks.
● Provide a position view on physical short and long positions from contracts and stocks required for trading
companies to run their trading business. Such a view is also relevant for non-trading companies to match
their purchase and stock positions to their requirements regarding locations and quality.

The risk is described in terms of priced and unpriced and hedged and unhedged quantities, by consolidating a
view of physical trades and paper trades in a certain time frame.

You use the Query Monitor to view the risk report.

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Features

The following risk reports are available for ACM.

● Price Type Report [page 70]

● Premium Report [page 71]
● Slate Report [page 71]

More Information

Running a Risk Report [page 69]

5.2.4.1 Running Risk Reports

Use

You can run a risk report to see the various exposures and their values created during the lifecycle.

Procedure

To run the risk report:

1. Go to transaction RSRT.
2. Enter the Query and Query Display, and then choose Execute.
The following queries are available for ACM reporting:

Query Description

2O0CFM_CTY_EXP//ACCGO/ACM_QUERY Template for ACM-relevant Risk Reporting

2O0CFM_CTY_EXP//ACCGO/ACM_PRICE_TYPE_310 ACM Price Type Report

2O0CFM_CTY_EXP//ACCGO/ACM_PREMIUM_RPT_310 ACM Premium Report

2O0CFM_CTY_EXP//ACCGO/ACM_SLATE_REPORT_310 ACM Slate Report

 Note

The queries in the table above are relevant for SAP Agricultural Contract Management 3.0 SP01 and all
subsequent releases.

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3. On the next screen, enter the required details such as Commodity ID, and so on, and then choose Execute
to run the risk report.
You can hide, display, filter, or drill down the various columns and rows. You can also filter each exposure
individually.

Result

The 2O0CFM_CTY_EXP//ACCGO/ACM_QUERY risk report shows the following results:

● Priced Contracts physicals: contract exposures that are fixed

● Unpriced contracts: contract exposures that are floating
● Application priced: application exposures that are fixed
● Application unpriced: application exposures that are floating
● Application invoiced (realized): application exposures that were already set as Finally Invoiced, Purchase
realization or Revenue recognition already occurred
● Inventory: material stock exposure
● Correction stock exposure quantity: correction stock exposure for material, plant, or storage location
● Book inventory: the physical net inventory based on adjustments due to quality characteristics, considering
realized transactions.
It is calculated using the formula: BI = M - A - C
BI - Book inventory
M - Material stock exposure quantity
A - Collection of application exposures not yet realized
C - Correction stock exposure quantity.

The price type report, premium report, and slate report show additional fields.

More Information

● Price Type Report [page 70]

● Premium Report [page 71]
● Slate Report [page 71]

5.2.4.2 Price Type Report

Use

You can use this report to view all key figures for the price fixation statuses FLAT, NFE, NPE, and NBE. It is
based on market pricing conditions.

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Features

This report displays the following key figures:

● Open Contract
This key figure shows the quantity used in contract creation as the contract exposure.
● Inventory on Unrealized Transactions
After application document creation, the Open Contract exposure reduces and an application exposure is
created. The application exposure is displayed in this key figure.
● Inventory on Realized Transactions
Once revenue recognition has been carried out for the application document, book inventory is displayed in
this key figure. Book inventory is calculated as described in Running Risk Reports [page 69].

5.2.4.3 Premium Report

Use

You can use this report to view a subset of the data shown in the price type report.

Features

This report shows the same key figures as the price type report, but only for the price fixation statuses FLAT
and NFE. This report is based on basis market conditions.

This report displays the following key figures:

● Inventory
Book inventory, calculated as described in Running Risk Reports [page 69].
● Contract Exposure on Application Document NFE
NFE application document
● Contract Exposure on Application Document FLAT
FLAT application document
● Unapplied FLAT Contract
Open FLAT contract
● Unapplied NFE Contract
Open NFE contract

5.2.4.4 Slate Report

Use

You can use this report to view the exposure data for inventory, contract, and futures trades.

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Features

This report is based on basis market conditions and contract conditions. It displays the implied futures trade
quantity in the key figures Unpriced NFE Purchase and Unpriced NFE Sales.

This report displays the following key figures:

● Inventory & Contracts

Book inventory, calculated as described in Running Risk Reports [page 69], and open contracts
● Less NPE
NPE contracts
● Unpriced NFE Purchase
NFE Purchase Contract
● Unpriced NFE Sales
NFE Sales Contract
● Future Contract
Financial trading contract

5.2.4.5 Position Reporting

Position reports retrieve and analyze data changes over the course of a business day.

Data displayed by the report can be calculated in any of the following ways:

● The Current Status report displays data at the time of execution of the report.
● The End-of-Day report displays data according to a predefined end-of-day snapshot, which defines a fixed
time in the day when the data is captured as a snapshot. For current date, if the snapshot time is not yet
reached, then the end-of-day report would have the same data as a current status report. For a date in the
future, a blank report would be generated, with the error message 'No applicable data found'.
● The Day-over-Day report compares data between two different days and displays the delta (or the
difference) in the data between these days.

 Note

The end-of-day and day-over-day reports are dependent on the creation of the Day End Snapshot in the
CMM_DEND_RUN table and JBAS, which is the report that creates the Day End run. The creation of this
snapshot is dependent on the time of execution of the JBAS batch job.

Integration

Position reports can be integrated with Microsoft Excel, via the analytical client. The reports can be accessed
using the Analysis for Office add-on. Once installed, this add-on adds a new tab, Analysis, to MS Excel. This tab
can be used to access available data sources as well as position reports to display data as described in the
following sections.

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Features

For Agricultural Contract Management 4.0, the position reports are developed using CDS views. Multiple views
combine to form the underlying data provider for each report, where some views are common to all the reports
and some are unique, based on the report functionality.

The position reports in Agricultural Contract Management versions 3.0 and 3.0 SP01, on the other hand, have
been developed using BeX queries. However, these reports can still be used after upgrading to Agricultural
Contract Management 4.0.

Related Information

Current Status Reporting [page 75]

End-of-Day Reporting [page 75]
Evaluating End-of-Day Data [page 80]

5.2.4.5.1 Connecting to Position Reports

You can execute position reports via MS Excel and enter the relevant user inputs to generate specific data.

Context

You can connect to the required position report using the following procedure:

Procedure

1. Select the Analysis tab from Excel.

 Note

This tab is only available in MS Excel if the Analysis for Office app has been installed on your machine.

2. Click the Insert Data Source dropdown and then the Select Data Source button on the dropdown. Recently
used data sources are also listed in this dropdown.
3. Skip the screen asking for logon parameters to the SAP BI Platform. You use a separate method to connect
to the system with data. Click next.
4. The subsequent screen shows a list of all data sources (SAP systems) available in the local SAP logon pad.
5. Select the system you want to connect to. Click next.
6. When you select the system, enter your credentials to connect.

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 You enter the following details:
○ Client user name
○ Relevant password
○ The language is optional.
Default language is set at the time of creation of the user account.
7. In the next window, search for the position reports you want to populate by entering the report name in the
search bar.
8. Select the required position report and enter the relevant selection parameters.

Related Information

Working with Report Parameters [page 74]

5.2.4.5.1.1 Working with Report Parameters

While executing a position report, you can enter specific user input values to retrieve the relevant data in your
report.

When you select the data source to populate the current status report, a window with input parameter fields
pops up. The values you enter in these parameter fields determine the data retrieved in the key figures of the
reports.

All fields marked with * are mandatory. You enter these values for the report to retrieve the relevant data:

● Company Code
● Quantity in Mass/Volume unit of measure
○ P: This is a default value that allows the report to display data in the commodity unit of measure
○ M: This value allows the report to display data in the mass unit of measure defined in the system
○ V: This value allows the report to display data in the volume unit of measure defined in the system.
● Show Past Due
○ N: This is a default value that displays all the previous transactions in the current period.
○ Y: When this value is selected, all the previous transactions are shown in the period in which they are
posted.

You can use the free attributes on the right-hand side to drill down the data in the report to further levels. These
attributes can be included in the report simply by dragging and dropping them in the boxes marked Columns
and Rows.

 Note

The end-of day report has one mandatory date parameter. If the cut-off time on the selected day has been
reached, the report displays end-of-day data for the selected business day. If not, the report shows current
data for selected business day.

The day-over-day reports have two mandatory date parameters in the input parameters window. The report
uses these dates to capture the end-of-day snapshots for these days. The report finally calculates the
difference in the data between these end-of-day snapshots and displays the delta in the Excel sheet.

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5.2.4.5.2 Current Status Reporting

The current status position reports are used to display a real time snapshot of the current data at the time of
report execution.

You can capture the current data using Analysis for Excel that allows you to enter specific user inputs while
connecting to the underlying view and retrieving the relevant data.

Related Information

Connecting to Position Reports [page 73]

5.2.4.5.3 End-of-Day Reporting

End-of-Day for Agricultural Commodity Management refers to establishing the basic data that your company
uses to perform activities at the close of a business day.

You can view your positions and evaluate the data using applications such as Analysis for Excel, for example, to
create reports or forecasts.

End-of-Day for Agricultural Commodity Management consists mainly into the following components:

● End-of-day positions
Here, you can view open financial and physical transactions.
● End-of-day evaluations of transactions
You prepare data about your open financial and physical transactions so that you can evaluate them.

Prerequisites

To use the features in End-of Day for Agricultural Commodity Management, you have performed the following
tasks:

● Create master data for key figures and portfolio hierarchies in Treasury and Risk Management. For more
information, see the Customizing activity (transaction SPRO) under Financial Supply Chain Management
Treasury and Risk Management Basic Analyzer Settings Define Portfolio Hierarchy .
● Activate the business functions Commodity Management 01.
● If you have extended your portfolio hierarchy to include more than just the company code, implement the
Add Fields to Key Structures to Map Hierarchy Nodes BAdI.
If your company wants to use a different key date for determining single records, implement the Determine
Evaluation Date Routine BAdI.
For more information, see Business Add-Ins of End of Day for Commodities.

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5.2.4.5.3.1 End-of-Day Snapshots

An end-of-day snapshot gives you an overview of your transactions as they were at the end of a business day.

You define a snapshot in End-of-Day Snapshots (transaction CMM_DEND_SNAPSHOT) by specifying a company,

portfolio hierarchy, portfolio hierarchy node, and when your business day ends.

When you define a snapshot for a portfolio hierarchy node, the same definition is applied each day. If your
company decides that the end of business for a particular day, for example, a public holiday, is at a different
time, you can define exceptions to this regular snapshot, which are only applicable to a single day per
exception.

Features

● End-of-Day Positions
For end-of-day positions, the system compares the time specified in your snapshot definition with
timestamps on your changed transactions. The system automatically generates a snapshot in table
CMM_DEND_RUN so you can see all open transactions as at the end of each business day.
For each change that you make to a transaction, the system automatically generates a time-stamped
version in the commodity exposure table (TEXT_CTY_EXPOS). The timestamp is the time at which the
change happened. End-of-day position queries use the timestamps to assign the transaction the correct
status in the end-of-day snapshot.
● Evaluating End-of-Day Data for Financial Transactions
To evaluate the data you have collected, you must perform daily tasks to prepare your snapshot.
You run Save Dataset (transaction JBAS), which uses the time provided in your snapshot definition to
determine which financial transactions are relevant for a certain day. Running Save Dataset captures all
open financial transactions.
Changes to financial transactions that you make after you run Save Dataset but before the time specified in
your snapshot definition update in the snapshot. Changes that you make after the time specified in your
snapshot but before you run Save Dataset the next day are not captured in a snapshot until you run Save
Dataset again.
You use this snapshot to determine single entity records, which you use to evaluate the data, for example,
using Market Risk Analyzer.
For example,

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 Calculating Save IDs

You define a snapshot time of 18:00 and run Save Dataset at 17:00 every day.
○ Day One
You create financial transactions A and B. When you run Save Dataset, it captures financial
transactions A and B in snapshot S1. When you add financial transaction C later, it the system
automatically associates it with a snapshot and adds the transaction to snapshot S1.
○ Day Two
You close financial transaction C and change financial transaction A. The system does not
automatically associate these changes with snapshot S1 because the snapshot time for day one has
been exceeded. When you run Save Dataset, it captures financial transaction B from day one and
financial transaction A from day 2 in snapshot S2. It does not capture financial transaction C as it is
now closed. When you close financial transaction B later, the system automatically associates it with a
snapshot and removes the transaction from snapshot S2.

Related Information

Defining Snapshots [page 77]

Defining Exception Snapshots [page 78]

5.2.4.5.3.1.1 Defining Snapshots

You can define an end-of-day snapshot to capture the system data at the end of each business day.

Prerequisites

You have created master data for portfolio hierarchy nodes and key figures.

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Context

Snapshot definitions enable you to create consistent and explainable end-of-day reports.

Procedure

1. In End-of-Day Snapshot Definitions (transaction CMM_DEND_SNAPSHOT), insert a new row.

2. Specify a portfolio hierarchy node.

 Note

The first time you create a snapshot definition, you specify a portfolio hierarchy. Once you have saved
this definition, the portfolio hierarchy applies to all future definitions.

3. Specify a time and a time zone.

4. Save your entries.

Results

The definition is visible in table CMM_DEND_CUT. You can change or delete the definition in End-of-Day
Snapshot Definitions(transaction CMM_DEND_SNAPSHOT).

Related Information

Defining Exception Snapshots [page 78]

5.2.4.5.3.1.2 Defining Exception Snapshots

Create and define an exception snapshot in addition to your end-of-day snapshots. This us useful in cases
where your business day is terminated at a different time than the predefined one.

Prerequisites

You have defined a snapshot in End-of-Day Snapshot Definitions (transaction CMM_DEND_SNAPSHOT).

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Context

For the days on which your end of business is not at the usual time, you define an exception snapshot.

Procedure

1. In End-of-Day Snapshot Definitions (transaction CMM_DEND_SNAPSHOT), select a snapshot

definition.
2. Choose Maintain Exceptions.
3. Insert a new row.
4. Specify a date and time for your exception and if required, select an evaluation date routine.

 Note

You cannot define an exception snapshot for the same time as your daily snapshot. You cannot define
an exception snapshot in the past. When the snapshot time of an existing exception snapshot has been
reached, you cannot change the snapshot time.

5. Save your entries.

○ For more information about defining an end-of-day snapshot, see Defining a Snapshot.
○ For more information about evaluation date routines and evaluation dates, see the activity
documentation in the Customizing (transaction SPRO) at Financial Supply Chain Management
Treasury and Risk Management Basic Functions End-of-Day for Commodities BAdI: Determine
Evaluation Date Routine .

Results

The exception snapshot is now visible in the table CMM_DEND_RUN. You can change or delete the definition in
End-of-Day Snapshot Definitions by selecting the relevant snapshot definition and choosing Maintain
Exceptions.

Related Information

Defining Snapshots [page 77]

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5.2.4.5.3.2 Evaluating End-of-Day Data

Evaluate end-of-day data on a daily basis to keep track of your financial transactions.

Context

You perform these activities in Treasury and Risk Management.

Procedure

1. Define a snapshot in End-of-Day Snapshot Definitions (transactions CMM_DEND_SNAPSHOT).

2. Prepare the snapshot in Save Dataset (transaction JBAS).
3. Determine the single records for this data in Determination of Single Records for End-of-Day
Snapshot (transaction RAEP1_EOD). You use single records to evaluate your data.

 Note

We recommend using the Closing Cockpit to define, perform, and monitor your closing processes as
well as to automate when you run Save Dataset and Determination of Single Records for
End-of-Day Snapshots. Run Save Dataset early to ensure that it finishes before your snapshot
time has been reached.

5.2.4.5.3.2.1 Checking Error Logs

Before reporting, check the error logs to confirm that all your end-of-day processes have completed
successfully.

Context

It is particularly important to check the error logs when you have scheduled all your processes to run
automatically.

Procedure

1. In Error Logs Since Last End-of-Day Snapshot (transaction CMM_DEND_CHECK_LOGS), enter your company
code, the object, and the sub object of the application that you want to check the logs for.

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2. Select Check Logs Since Last EoD Snapshot.
3. Execute the transaction.

5.2.4.5.3.2.2 Adjusting Basis Rates

If the reference rate for basis market has a reference to a non-market-compliant future, adjust the basis rate
before performing a mark-to-market valuation of the contract so that it is equal to the market-compliant future.

Context

The reference rate for the basis market is entered in transaction FDCS17B.

If the reference rate for basis market (entered in transaction FDCS17B) has a reference to a non-market-
compliant future, you adjust the basis rate before performing a mark-to-market valuation of the contract so
that it is equal to the market-compliant future.

The basis adjustment value is calculated as the spread between the following futures:

● The market-compliant future referenced in the logistics document, for example, the purchase order, which
has a fixed basis
● A basis market reference future

If the currency of the basis is different from the currency of the referenced future, the system determines the
date that falls in between the delivery from and delivery to dates of the basis rate and uses the FX (foreign-
exchange) forward exchange rate for this day to convert the spread into the currency of the basis.

Procedure

Run Perform Basis Adjustment for End-of-Day Reporting (transaction CMM_ADJ_BAS) for your snapshot and
company code. The basis rates are automatically adjusted. When you generate your reports, the system uses
the adjusted basis value.
Example

Field Value

DCS CMZSCB

Delivery Date 12.06.2016 (The system calculates the delivery period as

01.06.2016 - 30.06.2016)

The referenced market-compliant future has a maturity key date of 15.06.2016 and is priced at 23 USD.

The basis market reference future is non-market-compliant and has a maturity key date of 15.07.2016. This is
priced at 24 USD.

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To calculate the basis adjustment, the market-compliant future is subtracted from the basis market reference
future (24 USD − 23 USD). In this case, the basis adjustment is 1 USD.

As the original basis price was in Euros and the basis adjustment is in US dollars, the system has to calculate
the basis adjustment in Euros. It uses the mid point of the delivery period (in this case 16.06.2016) to calculate
the exchange rate. The USD to EUR FX rate for 16.06.2016 is 0.8. Applying this gives an adjustment of 0.8 EUR.

This adjustment is then applied to the basis rate to give the adjusted basis rate: 0.8 + 1.3 = 2.1 EUR.

5.2.4.5.3.2.3 Updating Raw Exposures from Material Stock

Your stock must be periodically revaluated to keep track of the stock-on-hand and its mark-to-market value.

Prerequisites

● You have defined the pricing procedure for stock pricing in the Customizing under Commodity Pricing
Settings for Formula Assembly Define Formula Assembly Procedure .
● You define the formula assembly for stock in the Customizing under Commodity Pricing CPE in SD
Documents .
● You have configured stock relevancy in the Customizing (transaction SPRO) under Treasury and Risk
Management Integration Materials Management Settings Define Relevance Settings .
● You have specified which condition types represent market price conditions, contract price conditions, and
basis and future prices in the Customizing under Commodity Pricing Analytics Mark-to-Market
Assign Condition Types to Groups .

Context

Periodic stock revaluation also allows you to keep track of changes in stock resulting from realized and invoiced
goods movements.

You can revaluate this stock using the following procedure:

Procedure

1. Run Select Material Inventory for Exposures and Mark to Market (transaction MATREX) for the stock that
you want to reevaluate. This creates a versioned snapshot of your stock that you can process using the
mark-to-market for stock queries.

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  Note

While Select Material Inventory for Exposures and Mark to Market is running, you cannot edit the
objects that are being assessed. To edit them, wait until the report is finished.

2. Select Items with Errors Only to reprocess any stock records that the system could not successful process
last time you ran Select Material Inventory for Exposures and Mark to Market.

5.2.4.5.3.2.4 Preparing a Snapshot

When you prepare a snapshot, you associate all open financial transactions with a date by creating a SAVE ID
for the date and the financial transactions.

Prerequisites

● You have created the RFC connections for SAVE IDs in the Customizing activity Create Background RFC
Destinations for End-of-Day SAVE ID.
● You have defined a snapshot in End-of-Day Snapshot Definitions (transaction CMM_DEND_SNAPSHOT).

Context

Further changes to transactions before the snapshot time specified in your snapshot definition are associated
automatically.

You can prepare a snapshot using the following procedure:

Procedure

1. In Save Dataset (transaction JBAS), specify a portfolio hierarchy, portfolio hierarchy node, and a name.
2. Select Prepare End-of-Day Snapshot.
3. Choose Execute.
○ For more information about the Customizing, see Customizing.
○ For more information about defining an end-of-day snapshot, see Defining a Snapshot.
○ For more information about end-of-day snapshots, see End-of-Day Snapshots.

Results

Once the program has stopped running, it displays any success or error messages that occurred.

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The snapshot appears in tables JBRSVABEST and CMM_DEND_RUN.

Related Information

Defining Snapshots [page 77]

End-of-Day Snapshots [page 76]

5.2.4.5.3.2.5 Determining Single Records

Evaluate the data captured in the snapshot by determining single records at the end of each business day.

Prerequisites

You have created a snapshot in Save Dataset (transaction JBAS).

Context

To evaluate the data collected in your snapshot, you have to run Determination of Single Records for End-of-Day
Snapshot (transaction RAEP1_EOD) for each snapshot prepared in Save Dataset (transaction JBAS).

Procedure

For each snapshot generated, run Determination of Single Records for End-of-Day Snapshots
(transaction RAEP1_EOD).

5.2.4.5.3.3 Business Add-In for End-of-Day for Agricultural

Contract Management

You can customize the default implementation of End of Day for Agricultural Commodity Management.

You use transaction SPRO then Financial Supply Change Management Treasury and Risk Management
Basic Functions End of Day for Commodities .

In the Customizing options, SAP provides the following Business Add-Ins (BAdIs) for End of Day for Agricultural
Commodity Management:

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Name Description Use

Determine Evaluation Key Date Routine You can use this BAdI to change the You implement this BAdI to change the
evaluation date that is later used to de­ date from which you take market data
termine single record procedures based when determining single records.
on a portfolio hierarchy and portfolio hi­
erarchy node.

Add Fields to Key Structures to Map You can use this BAdI to map portfolio If you have added any fields other than
Portfolio Hierarchy Nodes hierarchy nodes for the end-of-day the default, Company Code, you must
processing in Treasury and Risk implement this BAdI. You implement
Management to the flat append struc­ this BAdI to make sure that any fields
ture CMM_DEND_KEY, which contains you have added to your portfolio hierar­
document characteristics, in chy are also present in CMM_DEND_KEY.
Logistics.

5.2.4.5.4 Day-over-Day Reporting

The day-over-day position reports are used to compare data between two different end-of-day snapshots and
give the delta (difference) over these two days.

You can enter the dates between which you want to see the change of data. The day-over-day report calculates
and displays the difference between the data over these two days.

Related Information

Input Parameters for Report Execution [page 85]

5.2.4.5.4.1 Input Parameters for Report Execution

Enter user input parameters while executing a position report, to enable it to retrieve the required data.

Similar to the parameters screen discussed in connecting to position reports, this screen has the same
mandatory and optional input parameters, apart from the dates. Instead of one, there are two mandatory date
fields on the screen. The day-over-day report uses the end-of-day snapshots on these days to calculate the
difference between the key figures, and displays them in the report.

Each transaction in the system impacts different key figures and their results, when the day-over-day data is
compared. These changes are reflected in the report generated in the spreadsheet.

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Related Information

Connecting to Position Reports [page 73]

5.2.5 Mark to Market Reporting

Snapshot-based mark-to-market reporting allows you to determine the relative value of a contract based on
current market prices.

SAP provides a versioning and snapshotting framework that allows you to mark your SAP Agricultural Contract
Management documents to market. This means that you can view the difference between the contract price on
a particular day and the end-of-day market price for the same commodity on the same day. In terms of the
market, mark-to-market (MtM) reporting indicates the relative value – as opposed to the book value – of the
contract. In so doing, it increases the efficiency and accuracy of contract processing. Once the relevant
business function for mark-to-market is activated, you can define end-of-day (EoD) snapshots for stock and
logistics documents, and find the mark-to-market value of these snapshots. Customizing options are provided
to ensure flexibility and compatibility with your existing SAP ACM infrastructure.

How it Works

Mark-to-market reports are based on a clearly defined end-of-day (EoD) snapshot, or timestamp. Any
transactions that take place after this snapshot, or material movements happening after, are not included in
the EoD snapshot report.

The Versioned Logistics Pricing (CMM_VLOGP) and (CMM_VLOGP_KONVD) tables are updated from the SAP ACM
document flow. The CMM_VLOGP update is triggered by the SAP ACM documents goods movements and
application documents. The CMM_VLOGP_KONVD update is called from all application-relevant actions such as
load data capture (LDC), application reversal, and revenue recognition, where there is a quantity involved.
(Pricing redistribution does not result in an update to the CMM_VLOGP_KONVD table.)

You define and create snapshots of different document types using the transactions provided. Document
quantities that have fixed pricing are considered, and quantities that have been realized are no longer part of
the query. The data are continuously versioned, meaning that whenever key changes take place (for example,
when a new contract is priced), the overall picture remains up-to-date. At reporting time, you apply the
valuations using the market data defined for the relevant valuation or price date. To do this, you use queries
provided by SAP that allow you to evaluate end-of-day snapshots at a business entity level (such as company
code), and to retrieve end-of-day mark-to-market values for the logistics documents assigned to that entity.

Mark-to Market Reporting for SAP ACM Scenarios

● Cancellation of trading contract quantities may occur as part of contract maintenance. For this reason, it is
possible to cancel part of a line item quantity in a contract. When a cancellation occurs, the canceled
quantity, if priced, moves from a priced lot to an unpriced lot. New versions are generated in the table
CMM_VLOGP for the contract and all subsequent documents for the contract.
● When the SAP ACM-specific washout or circle scenario is run, the system sets the application document to
realized. The entry in the CMM_VLOGP table is created with document type as ZW. No updates take place to

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 the CMM_VLOGP_KONVD table. Explicit revenue recognition is not required for washout and circle
application documents.

Related Information

First Steps for Mark-to-Market Reporting [page 87]

MtM Accounting for Logistics and Stock [page 93]
MtM Cubes and Queries [page 96]
Profit and Loss Reporting [page 103]

5.2.5.1 First Steps for Mark-to-Market Reporting

Complete these steps to begin using Mark-to-Market reporting.

Prerequisites

Before you can use Mark-to-Market reporting and run the queries, ensure the following:

1. You have activated business function Commodity Management 04.

2. You have created master data for key figures and portfolio hierarchies in Treasury and Risk Management.
For more information, see the Customizing activity (transaction SPRO) under Financial Supply Chain
Management Treasury and Risk Management Basic Analyzer Settings Define Portfolio Hierarchy .
3. If you have extended your portfolio hierarchy to include more than just the company code, you have
implemented the Add Fields to Key Structures to Map Hierarchy Nodes BAdI in the Customizing activity
(transaction SPRO) under Financial Supply Chain Management Treasury and Risk Management Basic
Functions End of Day for Commodities .
4. Before you start creating your reports, you need to establish the basic data that your company needs to
perform day-closing activities. When you have done this, you can view your positions and evaluate the data
using applications such as the Analysis for Office add-on. Once installed, this add-on adds a new tab,
Analysis, to MS Excel, to allow you to perform the necessary data analysis.

Related Information

Once-off Tasks [page 88]

End-of-Period Tasks [page 89]
End-of-Day Tasks [page 88]
Fixing Spreads [page 90]
Revaluating Logistics Documents [page 92]

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5.2.5.1.1 Once-off Tasks

Once-off setup for MtM.

Context

Complete this setup to begin using MtM for SAP ACM.

Procedure

Run the Load GMDA Prices for End-of-Day Reporting transaction (CMM_LOAD_GMDA). The Generic Market Data
table (CMM_GMDA) contains data that is used in the mark-to-market queries. Running this report creates
records for commodity forwards, commodity futures, and basis market data in the Generic Market Data table,
which are used as a benchmark for certain prices. After activating business function Commodity Management
02 or later, when you create new quotes in the Edit Commodity Prices transaction ( FDCS17) or the Edit Basis
Prices transaction ( FDCS17B), the system automatically creates market data references in the table. However,
you must load the references that were created before you activated the switch.

Related Information

End-of-Period Tasks [page 89]

End-of-Day Tasks [page 88]
First Steps for Mark-to-Market Reporting [page 87]

5.2.5.1.2 End-of-Day Tasks

MtM tasks to be performed at end-of-day.

Context

These are end-of-day processing tasks you perform regularly.

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Procedure

1. Load curves. This task is only required for MtM valuations which are against a curve. You don’t have to
carry out this task if all valuations are with respect to individual traded derivatives (the curve ‘grid points’).
You upload the commodity curve data by running the Load Commodity Curves for End-of-Day Reporting
transaction (CMM_LOAD_GMDACC).
2. Check errors. Logistical processes do not stop if there are exposure positions or MtM valuation errors;
instead, the errors are reflected in the application logs and queue errors. This means that at the end of the
day, you must check and identify the error logs in the Error Logs Since Last End-of-Day Snapshot
transaction (CMM_DEND_CHECK_LOGS)

5.2.5.1.3 End-of-Period Tasks

MtM tasks for end-of-period.

Context

These are tasks you must perform at the end of each period.

Procedure

1. Fix spreads for MtM reporting of ‘flat’ contracts. Spreads are reported between a future at which a contract
is fixed, and the future at which it is marked to market. You can use the Fix Spreads transaction
(CMM_FIX_SPREAD) to fix future price spreads for each business entity. You can either use the value
available at a given date or specify a spread value manually. Spreads are adjusted by an existing revaluation
report which adjusts the market valuations and spreads definitions. For more information, see the
documentation in the transaction.
2. Update raw exposures from material stock. Use the Select Material Inventory for Exposures and Mark-to-
Market transaction (MATREX) to create, update, and transfer raw exposures from material stock quantities
to the Treasury and Risk Management. The report valuates the stock quantities that are given a time stamp
at the time you run the transaction. Inventory figures are reconciled and the system stores the time-
stamped version of the calculated stock valuation with the logistic documents.

Related Information

First Steps for Mark-to-Market Reporting [page 87]

Once-off Tasks [page 88]
End-of-Day Tasks [page 88]

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5.2.5.1.4 Fixing Spreads

You can fix the spread between rates to prevent too much fluctuation.

Prerequisites

You have fixed a price for all of the components assigned to a price fixation group.

Context

To fix spreads, SAP provides a report (transaction CMM_FIX_SPREAD). In this report, you can either specify the
rate manually or choose a date from which to calculate it.

Procedure

1. Fix spreads for a portfolio hierarchy node. The standard implementation uses the company code to find
fixed spreads that you have created in transaction CMM_FIX_SPREAD. If you maintain your fixed spreads on
a higher level than company code, the system also searches for fixed spreads on the higher level.
2. Change standard settings. SAP provides a Business Add-In (BAdI) that you can use to change the standard
settings. For more information, see the Customizing (transaction SPRO) at Logistics General
Commodity Management Analytics Mark-to-Market Customer-Specific Business Add-Ins Enhance
Logic for Fixing Spreads .
3. Once you have fixed your spreads, run the Revaluation of Logistics Documents transaction (CMM_LREV) to
update the values in the mark-to-market reports.

Related Information

Fixing a Normal Spread [page 91]

Fixing a Spread between Prices on Two Different Markets [page 91]

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5.2.5.1.4.1 Fixing a Normal Spread

You can fix spreads where the contract price and the market price are both on the same market.

Context

You can fix spreads in the Fixed Spreads transaction (CMM_FIX_SPREAD).

Procedure

1. Create a new entry in the table.

2. In the first maturity date column, enter the maturity date of the contract price.
3. In the second maturity date column, enter the maturity date of the market price.
4. Save your entries. When you run revaluate contracts, the system checks the fixed spreads table for entries
that match the data in your contracts. If it finds an exact match for DIC, MIC, and the two maturity dates,
the system calculates the difference between the two prices and fixes the spread for the document.

Related Information

Fixing Spreads [page 90]

Fixing a Spread between Prices on Two Different Markets [page 91]

5.2.5.1.4.2 Fixing a Spread between Prices on Two Different

Markets

You can fix a spread between prices on two different markets.

Context

You fix spreads between two different markets by calculating cross-market spreads. You can do this in the Fixed
Spreads transaction (CMM_FIX_SPREAD).When you revaluate your contracts, the system analyzes all maturity
dates of the DCS for the market price, and selects the one closest to the maturity date of the contract price. If
two maturity dates are equally close to the maturity date of the contract price, the system uses the nearest
date in the future. The spread between these two maturities is called the cross-market spread. The system
checks the fixed spread table for the maturity date of either the contract price or the new market price. If it
finds one of them, it uses the fixation date for that entry as the fixation date for the spread. If it finds both, it

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uses the earlier of the two dates as the fixation date for the fixed spread. The system finds the price for both
markets at the fixation date. It adjusts the contract price by the cross-market spread and then fixes a normal
spread between the adjusted contract price and the market price.

Procedure

1. Create two new entries in the table, one for the MIC of the contract price and one for the MIC of the market
price.
2. Enter the maturity dates of the contracts in the first maturity key date column. You do not have to enter
anything in the second maturity key date column. If you do, however, no changes take place to the
calculation of the cross-market spread. This means that if you already have a normal fixed spread for a
maturity date, you do not need to create duplicates for the cross market spread.

5.2.5.1.5 Revaluating Logistics Documents

You can periodically revaluate your logistics documents, especially after a change in the market norm reference
or after fixing a spread.

Prerequisites

● The document items contain at least one pricing condition with a floating price.
● You have activated the Revaluation of Logistics Documents in Customizing.
● You have run the initial load report, CMM_LREV_INIT, for all relevant documents.

Context

In the Revaluation of Logistics Documents transaction (CMM_LREV), you select which logistics documents you
want to revaluate. This generates a new version for these documents with updated pricing information that can
be used by the mark-to-market reporting.

Procedure

1. Select the documents that you want to revaluate.

2. Perform a new pricing to keep the price values and subsequent values, such as risk management or credit
management of these documents up to date, in accordance with underlying price changes or price
estimate changes.

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Related Information

First Steps for Mark-to-Market Reporting [page 87]

Fixing Spreads [page 90]

5.2.5.2 MtM Accounting for Logistics and Stock

You can post and reverse MtM values of logistics documents and stock.

SAP provides the following transactions to post and reverse MtM values of logistics:

● Post Accounting Documents for Mark-to-Market (transaction CMM_MTM_ACC)

● Reverse Mark-to-Market Postings (transaction CMM_MTM_ACCR)

The system considers blocked stocks for MtM valuations for the following cases:

● Purchasing with goods receipt into valuated or non valuated blocked stock
● Sales with goods issue into in-transit stock (SIT)

 Recommendation

You can use the BAdI BADI_CMM_MTM_ACC to modify the standard processing for transaction Post
Accounting Documents for Mark-to-Market (CMM_MTM_ACC) according to your business requirements. For
more information, see the BAdI documentation. You can find this BAdI in Customizing under Logistics
General Commodity Management Revaluation of Logistics Documents Postings for Mark-to-Market
Accounting .

Related Information

Posting Accounting Documents [page 94]

Reversing Mark-to-Market Postings [page 95]
Aggregating and Grouping Documents [page 96]

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5.2.5.2.1 Posting Accounting Documents

You can post accounting documents that contain the mark-to-market value of your unrealized logistics
documents and stock.

Prerequisites

● You have assigned vendors, purchasing organizations, and purchasing groups to your company codes in
the Customizing under Logistics General Commodity Management Revaluating Contracts Postings
for Mark to Market Accounting .
● For the accounting documents that match your selection, the system reverses previously posted values,
and finally posts. Note that, if you have not restricted your selection by company code or profit center, the
system cancels all open (unrealized) documents and stock records.

Context

Every time you run the Post Accounting Documents for Mark-to-Market transaction (CMM_MTM_ACC), the
system performs a reversal and cancels previously posted documents. This ensures that you do not get
duplicate values for the same unrealized logistics documents or stock. Choose whether you want the system to
group the posted documents. If you select the Group Postings checkbox, the transaction posts one accounting
document for each group of logistics documents or stock data records. The system creates groups based on
certain criteria, for example, whether the value of mark-to-market is positive or negative and to which profit
center the logistics document or stock data record relates. You can perform a simulation of the results.

Procedure

1. Select the snapshot date and posting date, and enter the company code and profit center.
2. Select which type of logistics documents and stock data records you want to post accounting documents
for.
3. Optionally, select the Group Postings checkbox.
4. Run the transaction in simulation mode and check the values.
5. Choose Execute.

Related Information

MtM Accounting for Logistics and Stock [page 93]

Reversing Mark-to-Market Postings [page 95]
Aggregating and Grouping Documents [page 96]

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5.2.5.2.2 Reversing Mark-to-Market Postings

You can reverse previously created accounting documents that contain the MtM value of unrealized logistics
documents and stock.

Context

The reversal is done on the date the transaction is executed, typically at the beginning of an accounting period
for the open accounting documents of the previous accounting period.

 Note

If, for example, you accidentally executed the reversal in the middle of an accounting period, no further
postings are permitted for the related accounting documents with transaction CMM_MTM_ACC within that
accounting period.

Procedure

1. Select the reversal date, company code, and profit center.

2. Make your entries and run the transaction.
3. The results screen displays all canceled documents as well as the reversal documents and their MtM
values. From here, you can access documents related to a specific agency business document by clicking
the respective document number.

Related Information

MtM Accounting for Logistics and Stock [page 93]

Posting Accounting Documents [page 94]
Aggregating and Grouping Documents [page 96]

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5.2.5.2.3 Aggregating and Grouping Documents

The system posts aggregated mark-to-market values of logistics documents. You can also choose to group
your postings.

Context

Aggregation for Logistics Documents

The mark-to-market values of logistics documents are calculated and aggregated per document item. If
grouping is not activated, these values are posted in separate agency business and accounting documents.

Aggregation for Stock

The mark-to-market values of stock are calculated and aggregated by company code, business area, profit
center, material, plant, storage location, batch, and the type of data record. If grouping is not activated these
values are posted in individual agency business and accounting documents. The created agency business
documents are called a single settlement request. The following types of data record are available:

● Stock on hand
● Unrealized goods issues
● Unrealized goods receipts

Grouping

If you choose to group the mark-to-market values, they are posted in one single accounting document if they
belong to the same company code, business area, profit center, and have the same signage (+/-). This applies
for logistics documents as well as for stock. Although the mark-to-market values are grouped in one
accounting document, they are still separate in different accounting document items. Each mark-to-market
value is posted in one single settlement request. These single settlement requests are grouped into one
settlement request list. Both document types belong to the agency business framework.

Related Information

MtM Accounting for Logistics and Stock [page 93]

Posting Accounting Documents [page 94]
Reversing Mark-to-Market Postings [page 95]

5.2.5.3 MtM Cubes and Queries

SAP provides cubes and queries for mark-to-market reporting.

In addition to querying the cube and calling the delivered views, you can extend the views to customize the data
in your reports.

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Related Information

Mark-to-Market Reporting for Logistical Documents [page 97]

Mark-to-Market Reporting for Stock [page 99]
Mark-to-Market Values Cube for Logistics and Stock [page 101]

5.2.5.3.1 Mark-to-Market Reporting for Logistical

Documents

Working with MtM for logistical documents.

Prerequisites

● You have activated the business functions SAP Commodity Management 02, SAP ACM CM Integration, and
ACM CM Mark to Market Integration
● You have set up a pricing procedure defining the pricing elements and pricing conditions for, for example,
future and basis prices
● You have made the Customizing settings under Logistics General Commodity Management Analytics
Mark-to-Market .
● If you want to add fields to the mark-to-market reporting, you have implemented the BAdI
CMM_MTM_ADD_FIELDS.
● To enable the end-of-day snapshots for logistics documents, you have derived the business entities used in
Logistics from the portfolio hierarchy used in SAP Treasury and Risk Management by implementing the
BAdI CMM_DEND_KEY.
● To change how the system calculates currencies for mark-to-market reporting on unrealized logistics
documents and stock, you have implemented the BAdI CMM_VLOGP_FX.
● To change how the system fixes spreads, you have implemented the BAdI CMM_MTM_SPREADS_BADI.
● You have defined how the system automatically detects classes using the BAdI CMM_FCHAR.
● To run the mark-to-market queries, you have activated the PFCG role SAP_SR_CMM_MTMLOG_CDS.

Context

Mark-to-market reporting for logistics documents allows you to:

● Value your logistics documents against one or multiple components, for example, a commodity future
curve, or commodity future and basis
● Group the components against which you value your contracts to allow you to produce separate mark-to-
market reports for them, for example, mark-to-market for futures and mark-to-market for basis
● Include future price spreads in your mark-to-market calculations if you value your logistics documents
against distinct commodity futures

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To calculate the mark-to-market value, the system valuates the root document, which, in SAP Agricultural
Contract Management, is the application document. It then refines the valuation for each subsequent
document in the document chain. When you post a contract, for example, the system valuates it by performing
a pricing simulation based on the current values. The mark-to-market value of each contract is then reported
separately and the value is subtracted from the mark-to-market value of the undelivered quantities in the order.
Each logistics document is versioned so that the system can determine a snapshot for any given time.

To perform mark-to-market calculations on your logistics documents, SAP provides queries. Each query uses
the following key figures:

● Price commodity quantity

● Fixed (contract value side) or floating (market value side) price
● Exchange rate for market to document currency
● Exchange rate for document to statistics currency
● Value in statistics currency
● Value in document currency

 Note

Before calculating the mark-to-market value of the logistics documents in the first snapshot, the query
multiplies the values by -1. This means that the values in the first snapshot can be negative. The query
calculates the mark-to-market value of the second snapshot date normally. The analytic client calculates
the sum of these two values to find the difference. You can use this query to display the value change over
any period in the past. For example, you can select two dates that allow you to see the week-over-week or
month-over-month change.

Queries for MtM Logistical Documents

Query Name Technical Name Description

MtM Current Value /ACCGO/MTMLOGCURQRY Displays the value of the most recent
versions of your unrealized logistics
documents. You do not need to enter
any snapshot dates for this query, the
most recent versions are always used.

End-of-Day Mark-to-Market Value /ACCGO/MTMLOGEODQRY Displays the value of all unrealized lo­
gistics documents for a defined snap­
shot. You enter any date in the past to
see the value at the end of that day.

Day-over-Day Mark-to-Market Value /ACCGO/MTMLOGDODQRY Calculates the difference in value be­

tween two versions of the same logis­
tics documents contained in a defined
snapshot. You enter any two dates in
the past to see the difference in end-of-
day value between the two versions.

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Query Name Technical Name Description

Price Details for Future and Basis 2CIBASPRICEQUOT/ Allow you to cross-check market fu­
2CCBASPRICEQUOT, tures and basis on any given dates
2CILOFPRICEQUOT/ against market futures and basis that
2CCLOFPRICEQUOT are used in MtM logistics and stock
queries.

Related Information

MtM Cubes and Queries [page 96]

Mark-to-Market Reporting for Stock [page 99]
Mark-to-Market Values Cube for Logistics and Stock [page 101]

5.2.5.3.2 Mark-to-Market Reporting for Stock

Working with MtM reporting for stock.

Prerequisites

● You have activated the business functions Commodity Management 02, SAP ACM CM Integration, and ACM
CM Mark-to-Market Integration.
● You set up a pricing procedure defining the pricing elements and pricing conditions to value stock
quantities.
● You have made the Customizing settings under Logistics - General Treasury and Risk Management
Integration Material Management Settings Material Stock Raw Exposure Define General Settings .
● You upload the market references you use to value your stock to the same place as your stock-on-hand
data by running the Load Generic Market Data transaction (CMM_LOAD_GMDA). Individual material
movements are then continuously memorized and assigned to that load.
● If you want to add fields to the mark-to-market reporting, you have implemented BAdI
CMM_MTM_ADD_FIELDS in Customizing for Logistics - General Commodity Management Analytics
Mark-to-Market .
● To change how the system calculates currencies for mark-to-market reporting on unrealized logistics
documents and stock, you have implemented CMM_VLOGP_FX in Customizing for Logistics - General
Commodity Management Analytics Mark-to-Market .
● To run the mark-to-market queries, you must have activated the PFCG role SAP_SR_CMM_MTMLOG_CDS.
● You have installed the Analysis for Office add-on. Once installed, this add-on adds a new tab, Analysis, to
MS Excel, to allow you to perform the necessary data analysis.

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Context

In SAP Agricultural Contract Management, stock MtM represents the availability of stock at a given point of
time. Quantities with fixed pricing are considered by the system. As soon as a quantity belonging to a logistics
document is realized, it reduces or adds to the stock inventory. Two types of entries are updated in stock MtM:
application entries, and goods movement entries:

● Goods movements entries have record types 02 and 05/06, with fixed quantities. These entries are
updated through the orchestration engine, which is selected at runtime for a particular scenario (for
example, Purchase TTO, Sales TTD, and so on.). The orchestration engine triggers the process for
populating the application entries.
● Application entries are created if an analysis quantity needs to be adjusted with an LDC quantity.

Overview

When you run the Material Stock Treasury Exposure transaction (MATREX), a pricing key is generated in the
table Versioned Logistics Pricing (CMM_VLOGP) for the record types Stock-on-Hand (02), Goods Receipt (05),
and Goods Issue (06). Based on these pricing keys, the stock-on- hand (02) entries are generated at the time
of load data capture (LDC) object creation. Unrealized stock entries for Purchase (Goods Receipt (05)) and
Sales (Goods Issue (06) ) are updated according to the type of trading contract after the application document
has been created in the Load Data Capture Workcenter (transaction /ACCGO/UIS_WC). The entries for stock-
on-hand are updated as goods movement entries are created.

Commingled Stock

When the firm accepts a commodity from a vendor (owner) for storage at the firm's location, but does not
purchase it, the firm must keep a record of such commodity. This kind of obligated quantity is called
commingled stock. During the LDC process, with application instruction 05 for a spot purchase, the record
type 02 of goods receipt entries for actual storage location and obligation storage location (OBLG) is inserted
into the CMM_VLOGP_KONVD table. When you execute the Spot Monitor transaction (/ACCGO/SPOT_MONITOR),
the record type 05 is inserted for obligation storage location. Entries with record type 02 of obligation storage
location are delimited. During LDC, with application instruction 07 or 10 (for Accumulate to Store or
Unassigned), the record type 02 of goods receipt entries for actual storage location and obligation storage
location (OBLG) is inserted into the CMM_VLOGP_KONVD table. For partial purchases, goods receipt entries of
record type 05 are created for obligation storage location with purchase quantity, and 02 record type for the
remaining quantity. The system creates application document entries for actual storage location for record
types 02 and 05 for the delta logistics adjusted quantity (LAQ).

 Note

The report Delimit Application Stock-on-Hand Delta Records (/ACCGO/MTM_STOCK_DELIMIT) allows you to
delimit, or 'hide', the realized and unrealized stock-on-hand records of application documents that are
created during goods movements. These records are created to keep track of changes to the stock-on-
hand quantities between the two MATREX runs and unrealized purchasing receipts and sales issues.

In the mark-to-market queries for stock, unrealized goods receipts have the opposite mathematical sign to the
stock on hand. This means that in aggregated views, unrealized goods receipts are subtracted from stock-on-
hand until they are realized. Unrealized goods issues have the same sign as stock-on-hand. This means that in
aggregated views, unrealized goods issues are added to stock-on- hand in mark-to-market calculations. The
queries for stock also allow you to drill down further into the unrealized goods receipt or goods issues to view
the LAQ. That is, you can view the quantity consumed from the contract quantity after deliveries have been
applied and adjusted for governing weights and grades based on discount premium quality schedules (DPQS).

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The contractual value of stock is calculated using the material valuation. The market value is calculated using
conditions in a market price procedure. To determine the contractual value, the system only supports a
standard price for the material. However, you can extend this to support other kinds of valuations.

To perform mark-to-market calculations on your stock, SAP provides queries. Each query uses the following
key figures:

● Price commodity quantity

● FX-fixed commodity quantity
● Fixed (contract value side) or floating (market value side) price
● Exchange rate for market to document currency
● Exchange rate for document to statistics currency
● Value in statistics currency
● Value in document currency
● End-of-day Mark-to-Market

Queries for MtM Stock

Query Name Technical Name Description

End-of-Day Mark-to-Market Value C_CmmdtyMtmStkEodQry Displays the value of all stock records
(2CCCOMTMSEODQRY) for a defined snapshot. You enter any
date in the past to see the value at the
end of that day.

Price Details for Future and Basis Quer­ 2CIBASPRICEQUOT/ Allow you to cross-check market fu­
ies 2CCBASPRICEQUOT, tures and basis on any given dates
2CILOFPRICEQUOT/ against market futures and basis that
2CCLOFPRICEQUOT are used in MtM logistics and stock
queries.

Related Information

MtM Cubes and Queries [page 96]

Mark-to-Market Reporting for Logistical Documents [page 97]
Mark-to-Market Values Cube for Logistics and Stock [page 101]

5.2.5.3.3 Mark-to-Market Values Cube for Logistics and

Stock

This CDS view is the basis for all delivered mark-to-market queries for unrealized logistics documents and
stock.

You can use this CDS view as the basis for your own queries by extending the cube as required. To run the
mark-to-market queries, you must have activated the PFCG role SAP_SR_CMM_MTMLOG_CDS. The CDS view
contains the parameters P_MTMDataSelectionType. This parameter enables you to reuse of the cube for

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multiple analytic scenarios. This parameter determines which logic the system uses to retrieve versioned
logistics data, evaluate date parameters, and retrieve market data. The following values are supported:

Parameter Values

Parameter Description

1 MtM End-of-Day

2 MtM Day-over-Day

3 MtM Current Day

P_EvaluationDate

This date is used to determine the relevant price market data.

 Note

The system always evaluates this parameter in conjunction with parameter P_MTMDataSelectionType. If
you have chosen value 2 for parameter P_MTMDataSelectionType, the system ignores parameter
P_EvaluationDate and uses the determined snapshot date as the evaluation date.

P_ExchRateEvaluationDate

This date is used to determine the relevant exchange rate market data.

 Note

The system always evaluates this parameter in conjunction with parameter P_MTMDataSelectionType. If
you have chosen value 2 for parameter P_MTMDataSelectionType, the system ignores parameter
P_ExchRateEvaluationDate and uses the determined snapshot date as the exchange rate evaluation
date. If you have chosen value 3 for parameter P_MTMDataSelectionType, the system ignores parameter
P_ExchRateEvaluationDate and uses the value of parameter P_EvaluationDate as the exchange rate
evaluation date.

P_EndOfDaySnapshotFromDate

This date is used to determine which versions of unrealized logistics documents, unrealized goods receipt and
issues, or stock on hand records are retrieved.

 Note

The system always evaluates this parameter in conjunction with parameter P_MTMDataSelectionType. If
you have chosen value 1 for parameter P_MTMDataSelectionType, the date entered for parameter
P_EndOfDaySnapshotFromDate must be the same as the date entered for parameter
P_EndOfDaySnapshotToDate. If you have chosen value 3 for parameter P_MTMDataSelectionType,
the system ignores parameter P_EndOfDaySnapshotFromDate .

P_EndOfDaySnapshotToDate

This date is used to determine which versions of unrealized logistics documents, unrealized goods receipt and
issues, or stock on hand records are retrieved.

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  Note

The system always evaluates this parameter in conjunction with parameter P_MTMDataSelectionType. If
you have chosen value 1 for parameter P_MTMDataSelectionType, the date entered for parameter
P_EndOfDaySnapshotToDate must be the same as the date entered for parameter
P_EndOfDaySnapshotFromDate.

Related Information

MtM Cubes and Queries [page 96]

Mark-to-Market Reporting for Logistical Documents [page 97]
Mark-to-Market Values Cube for Logistics and Stock [page 101]

5.2.6 Profit and Loss Reporting

A brief introduction to Profit and Loss (P&L).

P&L (sometimes known as 'PnL') is the term used by traders to refer to the daily change to the value of their
trading positions. The general formula for P&L is P&L = Value today minus value yesterday.

Profit and Loss (P&L) reporting is a financial instrument used to determine a company's profit or loss based on
market factors, while also explaining the factors that contribute to the profit and loss. Traders can monitor the
market valuation of commodities in a certain evaluation period, and determine the factors to which the
fluctuations in the market evaluation can be attributed.

5.2.6.1 About P&L for SAP ACM

Overview of P&L for SAP Agricultural Contract Management.

To enable the procurement and sales of various agricultural commodities, SAP ACM creates trading contracts.
These agricultural commodities are traded on the commodities exchange, and their market prices undergo
fluctuation because of various factors. The P&L for SAP ACM solution uses existing Commodity Management
queries for P&L reporting to compute and explain the profit and loss on these contracts, while extending the
functionality to cover ACM-specific exception scenarios. This computation of profit and loss for ACM-specific
scenarios, and subsequent determination of attributing factors, is also needed for stock

Prerequisites

Consider the following before executing a P&L report:

● For a contract to be considered by P&L attribution reporting, the contract quantity must be open and
unrealized

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● Only physical contracts are supported
● The quantity must have either a fixed price, a fixed FX, or both

Features

P&L reports in ACM:

● Compute the profit and loss for ACM-specific business scenarios in a certain evaluation period
● Determine the changes in the market data or physical contact to which the profit and loss in the evaluation
period can be attributed

Integrating SAP Agricultural Contract Management with Contract Management

Related Information

Integration with SAP Commodity Management [page 104]

Integration with SAP ACM Mark-to-Market [page 105]

5.2.6.1.1 Integration with SAP Commodity Management

SAP Agricultural Contract Management (ACM) is integrated with SAP Commodity Management (CM) to
provide real-time risk management based on pricing or logistics events.

P&L for SAP ACM harnesses the existing SAP CM P&L concept and functionality to provide P&L reporting on
agricultural commodities.

P&L for SAP ACM constitutes a CDS stack that is almost completely based on the CDS stack for P&L for SAP
CM. Existing SAP Commodity Management queries are used for SAP ACM P&L reporting. When certain SAP
ACM-P&L specific activities are executed, the following tables are updated:

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● CMM_VLOGP
● CMM_TPL_EFFECT
● CMM_VLOGP_CONV_C
● CMM_VLOGP_CONV_U

This allows SAP CM-P&L to correctly compute the profit and loss during an evaluation period.

Features

The following features are typical of P&L reports integrated with SAP CM:

● Physical transactions and stock only are supported; financial contracts are not supported
● The SAP ACM exception scenarios washout, circles, cancellations, under-fills, and returns are supported.

 Note

While cancellation and underfill also exist as scenarios in SAP Commodity Management, they are
different scenarios, and the values are computed differently for SAP ACM and SAP CM P&L reporting.

The contract basis in trading contracts cannot be changed during P&L reporting. If you want to change the
contract basis you have to lift the prices, save the contract, and price the contract again with the new price.

5.2.6.1.2 Integration with SAP ACM Mark-to-Market

About the P&L and Mark-to-Market (MtM) reporting solutions for SAP ACM.

P&L is used alongside the Mark-to-Market (MtM) reporting solution for SAP ACM. The computation facet of
P&L takes the form of an MtM day-over-day valuation: in this way, P&L is used to reconcile the delta MtM
values.

To ensure that P&L-specific CMM_VLOGP records get disregarded from the MtM end-of-day (EoD) computation,
the system sets the Valid To and Valid From dates, the time, and the timestamps to the same value for those
records. However, these records are still considered by the P&L queries as long as the evaluation date range
includes the timestamp associated with such records.

To ensure that P&L-specific CMM_VLOGP records get disregarded from the MtM current values computation, the
system sets the version number to a non zero value for those records. However, these records are still
considered by the P&L queries as long as the evaluation date range includes the timestamp associated with
such records.

5.2.6.2 Computing P&L: Standard Calculation

P&L has two essential facets: computation and attribution. The components are used for calculating MtM
valuation.

The computation takes place as an MtM day-over-day valuation as follows:

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● The system computes the MtM values at T0 (the start date of the evaluation period) and T1 (the end date
of the evaluation period)
● The system computes the P&L values as the difference between T1 and T0

During this evaluation period, certain user activities are executed against the document and certain market
fluctuations take place. P&L uses various formulas to break down the contribution of each factor to the overall
value arrived at. P&L, like MtM, has multiple components: basis price, future prices, and multiple secondary
basis. The system computes MtM for all these components at T0 and T1.

 Example

MtM (Basis) = (Contract Price (Basis) - Market Price (Basis)) * (-3rd party purchase contract quantity)

MtM (Futures) = (Contract Price (Futures) - Market Price (Futures)) * (-3rd party purchase contract
quantity)

P&L (Basis) = MtM (Basis) T1 - MtM (Basis)

T0 P&L (Future) = MtM (Futures) T1 - MtM (Futures) T0

Hence, the profit and loss = MtM (T1) - MtM (T0). That is, P&L represents the 'delta' MtM. However, certain
exceptions exist for this rule, and these are specific to SAP ACM.

Related Information

Computing P&L with FX Consideration [page 106]

Computing P&L for Washouts and Circles Scenarios [page 107]
Computing P&L for Returns Scenarios [page 110]

5.2.6.2.1 Computing P&L with FX Consideration

P&L is computed differently in situations where multiple currencies are involved, since the final P&L calculation
involves consideration of the foreign currency exchange rate.

For example, you could have a scenario where a market currency is EUR, the document currency is GBP, and
the statistical currency is USD.

In both P&L and MtM, different currencies' conversion factors can vary between the start date of the evaluation
period ('T0') and the end date of the evaluation period ('T1').

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Understanding the Currencies Involved in an FX Consideration Computation

Type of Currency Definition

Statistical Currency The currency derived from the company code of the con­
tract.

Fixation Currency The currency in which the contract prices have been fixed.

Market Currency The currency of the market (exchange).

Document Currency The currency of the document (contract).

When creating the contract, along with specifying the futures and basis price, you can also fix the market
currency to document currency conversion rate. When you have a difference between the market currency and
the document currency, the Fixation Exchange Rate field becomes enabled, allowing you input a rate for the
fixation currency. For example, you could set it to 1.3 for EURO-GBP.

There is also a conversion factor from document currency to statistical currency. For example, a company may
do business with a company in another country, with the exchange listed in a third country, but all figures in the
report are displayed in the statistical currency. When fixation is done for market to document, the conversion
value from document currency to statistical at that time is frozen. When the New Activities query is executed
for the evaluation period, the fixed market to document conversion value and the frozen value (document to
statistical) is used for computing the P&L figures.

5.2.6.3 Computing P&L for Washouts and Circles Scenarios

P&L calculation for washout and circles uses the same rules. These are applicable for both sales as well as
purchase scenarios and the formula calculates the price per component.

To calculate the impact of the circles activity on final P&L calculation, execute the following three transactions:

● Circle activity
● Forward settlement for the circle
● Settlement reversal

Calculating the Beginning Position Value

The following features are typical for the beginning position:

● The beginning position is the quantity that is relevant for P&L calculation.
● The beginning position is calculated for sales and purchase scenarios
● The beginning position has the same calculation for both basis and futures

Beginning Position = (Market Rate (at T1) - Comparative Market Rate) * Relevant Quantity

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Calculating the Remove Price Value

The following features are typical for the Remove Price event type:

● The remove price is the price of the quantity used in the circles activity.
This price needs to be realized for P&L calculation.
● The remove price is calculated for both basis and futures.

Remove Price = (Comparative Contract Commodity Quantity - Quantity in Price Unit) * (Contract Price -
Market Rate)

 Note

A washout document is created due to circle activity.

Calculating the Set Price Value

The following features are typical for the Set Price event type:

● The set price is the price of the quantity used in the circles activity
● This price needs to be realized for P&L calculation
● The set price is calculated for both basis and futures

 Note

Calculation for remove price in circles transaction uses the contract price whereas the calculation for set
price uses the rate computed using the circle quantity and the reference price.

Calculating Forward Settlements for Circles

The following scenarios are possible while calculating forward settlements for circles:

● When a sales settlement is released, first approve the settlement and then create the debit memo.
● When a purchase settlement is released, approve the settlement. Your approval automatically creates the
invoice.

The circles settlements trigger the calculation of a realization remove price in a washout application document.

Realization Remove Price = (Comparative Contract Commodity Quantity - Quantity in Price Unit) *
(Contract Price - Market Rate)

 Note

The realization remove price always has the same value as the circles/set price but the opposite sign. For
example, if the circles/set price is 100, the realization remove price would be -100.

Once the settlement reversal process concludes, the circle is undone.

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5.2.6.4 Computing P&L for Cancellations and Underfill

Over the course of the evaluation period, multiple user activities can be performed that would impact the
calculations for P&L. These user activities are considered for final P&L calculation.

Context

For example, cancellations and underfill activities create a delta between the 3rd Party Purchase Contract at T0
and at T1, that is, the contract quantity used for calculating P&L at the beginning and ending of the evaluation
period.

This delta is captured in an application document that is realized to compute the final P&L value, after user
activities have been performed. To ensure accuracy in the final P&L value, a price lift, also known as the
Remove Price event type, is calculated:

Remove Price = -[(Contract price - Market price) * Quantity (for which realization is being done) * FX
Conversion (market to statistical)]

 Note

If the activity is performed at the document (contract) price, the remove price is negated (=0).

However, if the activity is performed at market (manual) price, the same formula resolves to a value that is
factored on the delta between both prices, the quantity to be realized, and the FX currency conversion.

Once the remove price is calculated, it goes through three stages of conversion:

Procedure

1. The remove price calculation

2. The remove price market to document calculation
3. This calculation involves an FX conversion from the market (manual price) currency to the document
(contract price) currency. If both are in the same currency, FX conversion rate = 1.
4. Remove price document to statistical calculation
5. This calculation involves an FX conversion from the document (contract price) currency to statistical (final
P&L) currency. If both are in the same currency, FX conversion rate = 1.
6. The remove price is calculated at basis and futures, such that Final Remove Price = Remove Price (Basis)
- Remove Price (Futures)
7. In the report for P&L computation for basis and futures, these activities are captured under the headers of
event type (the action initiated by the user, for example, realization) and elementary event type (impact of
the user activity on final P&L, for example, remove price). The quantity for which realization is being
performed can be found by Comparative Contract Commodity Quantity - Quantity in Price Unit.
8. In addition to this, to calculate the final P&L, it is essential to calculate the quantity and price (Beginning
Position Brought Forward) that is relevant to the P&L calculation, after realization of the application

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 document, as per user activity. This is computed as Beginning Position Brought Forward = [Market Price
(T0) - Market Price (T1)] * Beginning Position (T0).

Where,
○ T0 is the start of the evaluation period
○ T1 is the beginning of the evaluation period
○ Beginning Positions (T0) is the contract quantity at the beginning of the evaluation period
9. Finally, the total P&L value is computed as Total P&L(T0-T1) = Beginning Position Brought Forward -
Final Remove Price .

5.2.6.5 Computing P&L for Returns Scenarios

Over the course of the evaluation period, multiple user activities can be performed that can impact the
calculations for P&L. These user activities are considered for final P&L calculation.

Over the course of a returns scenario, the following four user activities are executed:

● Application for entire contract quantity

● Forward settlement and revenue recognition
● Creation of returns application document (RAD) and linking it to final application document (FAD)
● Settlement reversal

Calculating Beginning Position

Since the contract is created before the evaluation period, the beginning position must be calculated. The
beginning position is calculated for basis and futures.

Beginning Position Brought Forward = (Market Rate - Comparative contract Market Rate) * Calculation
Relevant Quantity

Application of Contract Quantity

The application of contract quantity has no impact on the calculation of P&L.

Forward Settlement and Revenue Recognition

This activity involves the following further activities:

1. Create settlement
2. Release settlement
3. Approve settlement

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4. Create debit memo
5. Recognize revenue

The activities trigger the calculation of remove price for basis and futures

Remove Price = (Comparative Contract Commodity Quantity - Quantity in Price Unit) * (Contract Price -
Market Rate)

Creation of RAD and Linking to FAD

Once the reversal application document is created, it is linked to the final application document and a set price
is calculated for basis and futures

Set Price = (Comparative Contract Commodity Quantity - Quantity in Price Unit) * (Contract Price -
Market Rate)

Settlement Reversal

The settlement reversal has no impact on the calculation of P&L as the total quantity relevant for P&L
computation and price of this quantity remain unchanged.

5.2.6.6 P&L Attribution

Overview of P&L attribution for SAP ACM.

What is P&L Attribution?

Attribution is the main focus of the P&L solution for SAP Agricultural Contract Management. Attribution
reporting serves to explain MtM day-over-day valuations of commodities; that is, it details how much each
event and the market price movements attributed to the MtM calculation.

Attribution is composed of several factors:

● The beginning position brought forward. This reflects the impact of the fluctuations in the market rates on
the overall profit and loss value.
● The beginning position brought forward FX. This reflects the impact of the fluctuations in the FX
conversion rates on the overall profit and loss value. The different currencies involved in the evaluation (for
example, market currency, statistical currency, and so on) mean that the conversion factors can vary,
which also contributes to the overall profit and loss value.
● New user activities/new activities FX. These are various activities (for example, setting the futures or basis,
or FX conversion activities) that are executed by the user on the contract. The contributions of these user
activities also impact the overall P&L value.

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How does it work?

The attribution report runs on the Analysis for Excel add-in, and the queried results display in a spreadsheet.
The report works by:

● Selecting all events of open contracts in the evaluation time frame

● Calculating the profit and loss elementary value changes for each event
● Displaying aggregate views of these values on bucket and commodity level

These categories, or buckets, appear as column headers in a P&L attribution report. You can break down,
understand, and analyze the source of P&L fluctuations between two points in time, with reference to easily
understandable pricing factors. You can run the queries for various scenarios and check the results.

Before You Start

Before you run the queries for SAP ACM P&L, ensure that the contract quantity is open and unrealized. Only
open and unrealized quantities can be considered in P&L reporting. At least one of the following must be fixed:

● The futures price

● The basis price
● The futures exchange rate from market to document currency
● The basis exchange rate from market to document currency

5.2.6.6.1 P&L: New Activities

In SAP ACM, for physical contracts brought forward, a new activity is any activity that is executed by a user on a
contract which could potentially have an impact on the reporting.

A new activity (FX) is an activity related to currency conversion factors that is executed by a user on the
contract, and which also impacts the overall profit and loss value. Profit and Loss (P&L) reporting queries all
new activities that take place during the evaluation period.

Events and Elementary Events

In the P&L New Activities attribution report, the reporting that results from logistics and stock transactions is
based on events and elementary events. Events are activities that are executed against the trading contract
and which are comprised of other elementary events. Elementary events are events that cannot be broken
down any further. Each event in the contract, therefore, is comprised of elementary events.

For each event type, there is formula for the calculation of event values. The terms in the formulas correspond
to the column headers in the New Activities report

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  Example

Event Type P&L Calculation

Set Price (Qty in Price Unit -Comp.Ctr.Cmdty Qty) * (Market Rate -

Contract Price) * (MktToStatFx)

In SAP ACM P&L, an event may imply the application of more than one formula to calculate its impact on
the MtM evaluation. Thus, for selected events, the P&L value is the sum of values of a set of elementary
events. To account for this, the elementary events that contribute to the P&L value of an event are shown in
the P&L New Activities report. You can drill down to see the entries in the Event Type column header - which
describes the action that was initiated by the user (such as 'Set Price') - and the Elementary Event Type
column header, which describes the action from the user's point of view (such as 'Set FX Flat'). Details of
the Event Group (such as 'New Activity') and the Event Category (such as 'Execution') are also visible.

You assign selected event types to event categories in Customizing for P&L. The available event categories
are:

● Trade Amendment
● Beginning Position
● Realization
● Others
● Pricing

You can also adjust the descriptions of the predelivered event types for SAP ACM, though you cannot add
or delete event types.

5.2.6.6.2 P&L: Beginning Positions and Market Rate

Fluctuations

Overview of beginning positions in P&L.

In P&L reporting, the beginning position is the unrealized position, or quantity, at the start of the current
evaluation period. The beginning position comes about as a result of activities executed prior to the current
evaluation period brought forward (in terms of moving market prices and FX rates).

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What is the Beginning Position Brought Forward?

Term What is it?

Beginning position brought forward At the end of an evaluation period, there is a closing amount
(or ‘position’), which comes about as a result of the various
activities executed during that evaluation period. At the start
of the next evaluation period, this unrealized amount is
brought forward to the new evaluation period and becomes
the new beginning position.

This 'beginning position brought forward’ is computed as the

difference in the market price (for both basis and futures)
between T0 and T1, multiplied with the beginning position.
The total BPBF (adding the basis and futures figures) is one
of the components that contributes to the P&L attribution,
since it reflects the impact of the fluctuations in the market
rates on the overall profit and loss value.

Beginning position brought forward (FX) At the end of an evaluation period, there is a closing amount
(or ‘position’), which comes about as a result of the various
activities, including FX conversions, executed during that
evaluation period. At the start of the next evaluation period,
this unrealized amount is brought forward to the new evalua­
tion period and becomes the new beginning position.

The beginning position brought forward FX is one of the

components that contributes to the P&L attribution. It re­
flects the impact of the fluctuations in the FX conversion
rates on the overall profit and loss value. The different cur­
rencies involved in the evaluation (for example, market cur­
rency, statistical currency, and so on) mean that the conver­
sion factors can vary, which also contributes to the overall
profit and loss value.

You can run the Beginning Position query for a certain evaluation period. The report queries predefined key
figures for the beginning position, allowing you break down and understand the impact of market changes of
commodity futures, basis, and FX rates on MtM changes.

The key figures for the beginning position for physical contracts and stock are:

Key Figure Description

P&L beginning position brought forward Overall P&L from market data movements

P&L market price brought forward Contribution of market price movements to BP P&L

P&L spread brought forward Contribution of spread changes to BP P&L

P&L FX rate market to statistic Contribution of FX rate changes to BP P&L

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Key Figure Description

P&L FX rate document to statistic Contribution of FX rate changes to BP P&L

P&L market adjustment value FX rate brought forward Contribution of FX rate changes to BP P&L

5.2.6.6.3 Running the Queries

You can use queries with their user inputs to generate P&L reports with the relevant information.

Prerequisites

To run the queries for P&L reporting, you must have enabled Analysis for Microsoft Excel.

Context

To run the queries:

Procedure

1. In the Query Monitor transaction, enter the query name.

2. Enter the contract number as the root document.
3. Enter the current date as the start of the evaluation period.
4. Run the query.

 Note

In the report, there are two rows, one for basis and one for future prices.

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5.2.6.6.4 Checking P&L Values in the Queries

For Mark-to Market (MtM) reporting, you use a report to set the end-of-day (EoD) timestamp for each day to a
particular time when the report runs and calculates the beginning position brought forward.

Context

For example, the EoD timestamp for each day is set to 4 PM. The report runs daily, which means that for day-
over-day reporting, the beginning position brought forward is calculated with the available documents at 4 PM
of the day before, and the new activities brought forward takes all MtM-relevant document changes (or
'events') into account between 4 PM of the day before until 4 PM of the reporting day.

To check the profit and loss (P&L) values for physicals in day-over-day reporting.

Procedure

1.  Note

This procedure is to compute the P&L for the events that have occurred before 4pm on the same day.

Call the ACM Cmdty P&L Value New Activity query (Technical name: 2C/ACCGO/DVPNLVAL).
a. Enter the evaluation date.
b. Enter the previous date.

2.  Note

This procedure is to check the key figures for beginning position brought forward.

Call the query Commodity BP P&L Valuequery (Technical name: 2CCCMMBPPNLVALUE) today after 4pm.
a. Set the evaluation key date to today (=T1).
b. Set the previous evaluation date to yesterday's (=T0) date.
c. Set the evaluation key date to today.
d. Set the evaluation period of a single record procedure to “100” (= day-over-day).

5.2.6.6.5 P&L Reporting

Related Information

Standard P&L Report: User Activities [page 117]

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Standard P&L Report: Beginning Position [page 121]
Expanding Scope: Additional Fields for Analysis [page 124]

5.2.6.6.5.1 Standard P&L Report: User Activities

The report parameters show the breakdown of a P&L report that is run for any user activities that may be
performed in SAP ACM.

You can use this table to understand what data the report displays and how this information changes when the
reporting factors are varied:

Column Name Data Element What You See

Evaluation Key Date CMM_EVAL_KEYDATE Date to be Evaluated

Prev. Eval Date CDS_EVALUATION_DATE_COMPAR Evaluation Date of Previous Date

Company Code BUKRS Company Identity

Profit Center PRCTR Profit Center

Plant WERKS_D Plant Name

Physical Commodity TBA_STOEFFCHEN Commodity of Material

Calc. Grp CMM_VLOGP_CALC_GRP MtM Condition Group

Event Group CMM_EVENT_GROUP Types of Event Group

Can have one of the following values:

● Beginning Position(10)
● New Activity(20)

Event Category CMM_EVENT_CAT Types of Event Categories

Can have one of the following values:

● Trade Amendment (AMENDMENT)

● Beginning Position (BEGPOS)
● Execution (EXECUTION)
● Others (OTHERS)
● Pricing (PRICING

Event Type CMM_EVENT List of Events Occurred in P&L

Elem. Event Type CMM_EFFECT Elem. Event Type

Root Document CMM_MTM_OBJID Source / Origin Document Number

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Column Name Data Element What You See

Root Doc. Item CMM_VLOGP_ROOT_ITEM Source / Origin Document Item Num­

ber

Root (BOR) Obj. Type CMM_VLOGP_ROOT_DOCTYP Business Object Repository: Basic Data

Term Number CPET_TERMNO Term Number

Condition Type KSCHL Condition Key

Contract DCS ID TBA_DCSID Derivative Contract Specification ID

Contract MIC TBA_MIC Market Identifier Code

Ctr Contr. Mat. Code TBA_CONTRACT_CODE Contract Maturity Code

CtrMat Key Date TBA_KEYDATE Maturity Key Date

Ctr Basis Type TBAC_BASIS_TYPE Types of Basis Types

Can have one of the following values:

● Primary Basis (Exchg Ref) Ext:

Bid/Ask(10A)
● Primary Basis (Exchg Ref) Int: Mar­
ket(10B)
● Secondary Basis (Transport) Ext:
Bid/Ask(20A)
● Secondary Basis (Transport) Int:
Market(20B)
● Secondary Basis (Quality) Ext:
Bid/Ask(30A)
● Secondary Basis (Quality) Int: Mar­
ket(30B)
● Replacement Basis (Flat1) Ext:
Bid/Ask(40A)

Contract Basis ID TBAC_BASIS_ID Basis ID

Ctr Price Type TBA_PRICETYPE Type of Price Quotation

Comp Market DCS ID CDS_COMP_MKT_DCSID Derivative Contract Specification ID

Comp Market MIC CDS_COMP_MKT_MIC Market Identifier Code

CompMkt Contr.Mat.Cd CDS_COMP_MKT_CONTRACT_CODE Maturity Code

Comp MktMat Key Date CDS_COMP_MKT_KEYDATE Maturity Date

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Column Name Data Element What You See

Comp Mkt Basis Type CDS_COMP_MKT_BASIS_TYPE Types of Basis Types

Can have one of the following values:

● Primary Basis (Exchg Ref) Ext:

Bid/Ask(10A)
● Primary Basis (Exchg Ref) Int: Mar­
ket(10B)
● Secondary Basis (Transport) Ext:
Bid/Ask(20A)
● Secondary Basis (Transport) Int:
Market(20B)
● Secondary Basis (Quality) Ext:
Bid/Ask(30A)
● Secondary Basis (Quality) Int: Mar­
ket(30B)
● Replacement Basis (Flat1) Ext:
Bid/Ask(40A)
● Replacement Basis (Flat1) Int: Mar­
ket(40B)

Comp Market Basis ID CDS_COMP_MKT_BASIS_ID Basis ID

Comp Mkt Price Type CDS_COMP_MKT_QUOTATION_PRCTYPE Security Price Type

Type of Data Record CMM_VLOGP_REC_TYPE Type of Transaction

Can have one of the following values:

● Unrealized Contract Quantity

● Stock on Hand
● Execution document (Goods Re­
ceipt/Goods Issue)
● Invoice Document
● Unrealized Goods Receipts
● Unrealized Goods Issues
● Financial Transactions

Price Fix. Status CMM_FBFIX_STATUS Defines pricing fixation

Can have one of the following values:

● No basis established (NBE)

● No future established (NFE)
● Flat (FLAT)
● No price established (NPE)

Valid From CMM_MTM_VALID_FROM_DATE Date of Creation

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Column Name Data Element What You See

Valid-From Time CMM_MTM_VALID_FROM_TIME Time of Creation

Profit and Loss CMM_CDS_PNL_VALUE Final Amount

PnL Spreads CMM_CDS_SPREAD_PNL_VALUE P&L Spreads Value

Qty in Price Unit CDS_CMMDTYQTY_IN_TERMUOM Commodity Quantity in Price Unit

Comp. Ctr Cmdty Qty CDS_COMP_CTR_QUAN_COMM Comparative Contract Commodity

Quantity in Term Unit of Measure

Calc. Rel. Quantity CMM_CDS_CALCRELQTY Relevant Quantity for Calculations

Contract Price CDS_CONTRACT_TERMRATE Contract Condition Term Rate

Comp. Contract Price CDS_COMP_CONTRACT_TERMRATE Comparative Contract Condition Term

Rate

Market Rate CDS_MARKET_TERMRATE Market Term Rate

Contract Spread Rate CDS_CONTRACT_SPREAD_RATE Contract Spread Term Rate

Fix Mkt Spread Rate CDS_FIX_MARKET_SPREAD_TERMRATE Fixed Market Spread Term Rate

Flt Mkt Spread Price CDS_FLT_MARKET_SPREAD_TERMRATE Floating Market Spread Term Rate

CtrFX: Market to Doc CDS_CTR_MARK_TO_DOC_EXCHRATE Contract Exchange Rate: Market to

Document Currency

CompCtr: Mark.toDoc CDS_COMP_CTR_MARK_TO_DOC_RATE Comparative Contract Exchange Rate:

Market to Document Currency

CtrFX: Doc. To Stat. CDS_CTR_DOC_TO_STAT_EXCHRATE Contract Exchange Rate: Document to

Statistics Currency

CompCtr: Doc.toStat. CDS_COMP_CTR_DOC_TO_STAT_RATE Comparative Contract Exchange Rate:

Document to Statistics Currency

MktToDocFx CDS_MKT_MARK_TO_DOC_EXCHRATE Market Exchange Rate: Market to Docu­

ment Currency

DocToStatFx CDS_MKT_DOC_TO_STAT_EXCHRATE Market Exchange Rate: Document to

Statistics Currency

MktToStatFx CDS_COMP_CTR_DOC_TO_STAT_RAT Comparative Contract Exchange Rate:

Document to Statistics Currency

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5.2.6.6.5.2 Standard P&L Report: Beginning Position

The report parameters show the breakdown of a P&L report that is run for any beginning position value that
may be performed in SAP ACM.

The table describes what you see when a P&L Beginning Position report is generated and how this information
changes when the reporting factors are varied.

Column Name Data Element What You See

Evaluation Key Date Further details available in Standard P&L Report: User Activities

Prev. Eval Date Further details available in Standard P&L Report: User Activities

Company Code Further details available in Standard P&L Report: User Activities

Profit Center Further details available in Standard P&L Report: User Activities

Plant Further details available in Standard P&L Report: User Activities

Physical Commodity Further details available in Standard P&L Report: User Activities

Calc. Grp Further details available in Standard P&L Report: User Activities

Event Group Further details available in Standard P&L Report: User Activities

Adjustment Type CMM_VLOGP_ADJUSTMENT_TYPE Type of Adjustment for the MtM or P&L

Calculation.

Can have one of the following values:

● Blank – Primary component

● ‘01’ – Futures spread
● ‘10’ – Contract value adjustment

Root Document Further details available in Standard P&L Report: User Activities

Root Doc. Item Further details available in Standard P&L Report: User Activities

Root (BOR) Obj. Type Further details available in Standard P&L Report: User Activities

Term Number Further details available in Standard P&L Report: User Activities

Condition Type Further details available in Standard P&L Report: User Activities

Market DCS ID TBA_DCSID Derivative Contract Specification ID.

Various values are possible depending

upon number of DCSs configured in the
system.

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Column Name Data Element What You See

Market MIC TBA_MIC Market Identifier Code

Various values are possible depending

upon number of MICs configured in the
system.

Mkt Contr. Mat. Code TBA_CONTRACT_CODE Contract Maturity Code

Values depend on configuration in the

system.

MktMat Key Date TBA_KEYDATE Maturity Key Date

Value depends on Maturity code se­

lected

Mkt Basis Type TBAC_BASIS_TYPE Basis Type

Can be primary basis or secondary ba­

sis.

Values depend on configuration

Market Basis ID TBAC_BASIS_ID Basis ID

Values depend on configuration

Mkt Price Type TBA_PRICETYPE Type of Price Quotation (spot, futures,

and so on)

Values depend on configuration

Type of Data Record CMM_VLOGP_REC_TYPE Type of Transaction

Can have one of the following values:

● Unrealized Contract Quantity

● Stock on Hand
● Execution Document (Goods Re­
ceipt/Goods Issue)
● Invoice Document
● Unrealized Goods Receipt
● Unrealized Goods Issues
● Financial Transaction

Comp Market DCS ID Further details available in Standard P&L Report: User Activities

Comp Market MIC Further details available in Standard P&L Report: User Activities

Comp MktMat Key Date Further details available in Standard P&L Report: User Activities

CompMkt Contr.Mat.Cd Further details available in Standard P&L Report: User Activities

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Column Name Data Element What You See

Comp Market Basis ID Further details available in Standard P&L Report: User Activities

Comp Mkt Basis Type Further details available in Standard P&L Report: User Activities

Comp Mkt Price Type Further details available in Standard P&L Report: User Activities

Price Fix. Status CMM_FBFIX_STATUS Defines Pricing Fixation

Can have one of the following values:

● No basis established (NBE)

● No future established (NFE)
● Flat (FLAT)
● No price established

Profit and Loss Further details available in Standard P&L Report: User Activities

PnL Market Price CMM_TERMRATE Market Rate of the Commodity

PnL Spread

PnL DocToStatFX CPET_ERP_FIXEXCHRATE_SIGN Exchange Rate from Document to Stat­

istical Currency.

PnL MktToStatFX CPET_ERP_FIXEXCHRATE_SIGN Exchange Rate from Market to Statisti­

cal Currency.

PaV FX BF Val

Qty in Price Unit Further details available in Standard P&L Report: User Activities

Comp. Ctr Cmdty Qty Further details available in Standard P&L Report: User Activities

Calc. Rel. Quantity Further details available in Standard P&L Report: User Activities

Market Rate Further details available in Standard P&L Report: User Activities

Comp. Market Rate CMM_TERMRATE Market Rate on 'From Date' of P&L.

Calc. Rel. Value CMM_TERMRATE Difference in Market Rates between the

Comparison Period.

Contract Spread Rate Further details available in Standard P&L Report: User Activities

Comp.Ctr.Spread Rate CMM_TERMRATE Spread Rate on 'From Date' of P&L.

Fix Mkt Spread Rate Further details available in Standard P&L Report: User Activities

MktToDocFx Further details available in Standard P&L Report: User Activities

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Column Name Data Element What You See

CompMkt: Mark.toDoc CPET_ERP_FIXEXCHRATE_SIGN Exchange Rate from Market to Docu­

ment Currency on 'From Date' of P&L.

DocToStatFx Further details available in Standard P&L Report: User Activities

CompMkt: Doc.toStat. CPET_ERP_FIXEXCHRATE_SIGN Exchange Rate from Document to Stat­

istical Currency on 'From Date' of P&L.

MktToStatFx Further details available in Standard P&L Report: User Activities

CompMkt: Mark.toStat. CPET_ERP_FIXEXCHRATE_SIGN Exchange Rate from Market to Statisti­

cal Currency on 'From Date' of P&L.

Type of Data Record Further details available in Standard P&L Report: User Activities

Related Information

Standard P&L Report: User Activities [page 117]

5.2.6.6.5.3 Expanding Scope: Additional Fields for Analysis

You can drill down through the report data using additional attributes available in the report.

These additional report parameters are available in a bar on the right hand of the report. You can drag and drop
these additional parameters onto the report to further drill down the report data.

Column Name Data Element What You See Availability in P&L Report

Measures ● P&L Activity

● P&L Beginning Position

Adjustment Type P&L Activity

Application ● P&L Activity

● P&L Beginning Position

● P&L Activity
● P&L Beginning Position

Batch ● P&L Activity

● P&L Beginning Position

Business Area P&L Activity

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124 PUBLIC Integration with SAP Commodity Management
Column Name Data Element What You See Availability in P&L Report

Category ● P&L Activity

● P&L Beginning Position

Commodity UoM ● P&L Activity

● P&L Beginning Position

Date P&L Activity

Contr.Mat.Cd P&L Activity

CompMkt P&L Activity

Contracted Plant P&L Activity

Cross Company ● P&L Activity

● P&L Beginning Position

Delivery Date ● P&L Activity

● P&L Beginning Position

Delivery Date From P&L Activity

Delivery Date To P&L Activity

Distribution Channel ● P&L Activity

● P&L Beginning Position

Division ● P&L Activity

● P&L Beginning Position

Doc (BOR) Obj. Type ● P&L Activity

● P&L Beginning Position

Document ● P&L Activity

● P&L Beginning Position

Document Currency ● P&L Activity

● P&L Beginning Position

Document Item ● P&L Activity

● P&L Beginning Position

End Date of Period ● P&L Activity

● P&L Beginning Position

FWD FX freeze date ● P&L Activity

● P&L Beginning Position

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Column Name Data Element What You See Availability in P&L Report

FX Fixation Time ● P&L Activity

● P&L Beginning Position

FX Fixation_Date ● P&L Activity

● P&L Beginning Position

FX Maturity Date ● P&L Activity

● P&L Beginning Position

Has Error ● P&L Activity

● P&L Beginning Position

Incoterms ● P&L Activity

● P&L Beginning Position

Incoterms (Part 2) ● P&L Activity

● P&L Beginning Position

LDC ID /ACCGO/E_UIS_ID Load Data Capture Object ID P&L Activity

This is an ACM attribute

Material ● P&L Activity

● P&L Beginning Position

Material Group ● P&L Activity

● P&L Beginning Position

MCondition ● P&L Activity

● P&L Beginning Position

Mode of Transport P&L Activity

MtM Condition Group ● P&L Activity

● P&L Beginning Position

MtM Value Realized ● P&L Activity

● P&L Beginning Position

Nomination Key P&L Activity

Rate Fixation Time ● P&L Activity

● P&L Beginning Position

Rate Fixation Date ● P&L Activity

● P&L Beginning Position

QuotGroup ● P&L Activity

● P&L Beginning Position

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126 PUBLIC Integration with SAP Commodity Management
Column Name Data Element What You See Availability in P&L Report

Purch. Organization ● P&L Activity

● P&L Beginning Position

Pricing Key P&L Activity

Predecessor Doc. ● P&L Activity

● P&L Beginning Position

Predec. Doc. Item ● P&L Activity

● P&L Beginning Position

Pred(BOR) Object P&L Activity

Typ P&L Activity

Payment Date ● P&L Activity

● P&L Beginning Position

Operation ● P&L Activity

● P&L Beginning Position

Nomination number P&L Activity

Sales Organization ● P&L Activity

● P&L Beginning Position

Sold-To Party ● P&L Activity

● P&L Beginning Position

Start Date of Period ● P&L Activity

● P&L Beginning Position

Statistics Currency ● P&L Activity

● P&L Beginning Position

Storage Location ● P&L Activity

● P&L Beginning Position

Syst. Message Number ● P&L Activity

● P&L Beginning Position

Term UoM ● P&L Activity

● P&L Beginning Position

Valuation Ref Date ● P&L Activity

● P&L Beginning Position

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Column Name Data Element What You See Availability in P&L Report

Vehicle No. /ACCGO/E_VEH_NO Vehicle Number P&L Activity

This is an ACM attribute

Vendor ● P&L Activity

● P&L Beginning Position

Business Area P&L Beginning Position

Calc.Grp P&L Beginning Position

Comp Valuat Ref Date P&L Beginning Position

Pred(BOR) Object Typ P&L Beginning Position

Prev.Eval Date P&L Beginning Position

Related Information

Standard P&L Report: User Activities [page 117]

Standard P&L Report: Beginning Position [page 121]

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128 PUBLIC Integration with SAP Commodity Management
6 Expense Management

Use

Expense Management provides you with a range of features that enable you to manage the costs associated
with a commodity trade. As well as providing you with the functionality to handle various kinds of costs and
commissions incurred by a trading business, Expense Management allows you to automatically accrue planned
expenses, link service contracts to planned expenses, and route invoices to the relevant expense interface.

For more information, see SAP Library for SAP ERP on SAP Help Portal at http://help.sap.com/erp . Choose
SAP ERP Central Component. Under Application Help, open SAP Library and choose SAP ERP Central
Component Logistics Global Trade Management Trading Expenses

Integration

Expenses defined at pricing contract level flow down in the contract execution process so that they are copied
to all follow-on documents and can be settled at a later time. In order to achieve consistency in the system and
to ensure that expenses are accrued and settled in the right places, the Expense Management component is
integrated with the following components:

Call-Offs

Expenses are copied from the pricing trading contract to the logistics trading contract during the call-off
process.

For more information, see Call-Offs [page 140].

Contract Application

Planned expenses on existing logistics documents are accrued during contract application.

For more information, see Contract Application [page 167].

Contract Settlement

Recoverable expenses (accrued and settled VBDs) are retrieved from an application item. These expenses are
then settled in the Contract Settlement component. An ABD is created after settlement approval which
includes the expense amount in its net value calculation.

The expense VBDs, for which the Recover via CAS checkbox is selected, are retrieved from the Contract
Settlement component, and settled in Settlement Workcenter.

For more information, see Contract Settlement [page 213] and the Settlement Workcenter [page 226].

Revenue Recognition

Expenses are recognized and picked-up during the revenue recognition process. The expenses are then copied
to the accrued and settled vendor billing document (VBD).

For more information, see Revenue Recognition Processor [page 256]

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Features

● Link Service Contract to Planned Expenses

The system can retrieve the latest expense rate based on the service contract by linking service contracts
to planned expenses.
For more information, see Link Service Contract to Planned Expenses [page 130].
● Invoice router
The invoice router ensures that based on your input parameters, you are guided to the correct expense
interface, either MIRO or standard GTM.
For more information, see Invoice Router [page 132].
● Automatic Accrual of Expenses during Contract Execution
Planned expenses can be automatically accrued at any stage of the contract execution process, for
example, at the time of delivery or goods movement.
For more information, see Automatic Accrual of Expenses during Contract Execution [page 133].
● Document Flow
Document flow gives you an overview of how far a commercial transaction has progressed as well as the
follow-on documents related to the transaction.
For more information, see Document Flow [page 134]

6.1 Link Service Contract to Planned Expenses

Use

The system can retrieve the latest expense rate based on the service contract by linking service contracts to
planned expenses.

When service contracts are linked to planned expenses you can get the best estimated cost of an expense. For
every expense class, you can maintain the service contract number and expense rate so that whenever
expenses corresponding to the expense class are entered in the service contract, the latest rates are picked up
automatically by the system, thereby eliminating the need to manually check for the latest rates.

Linking a service contract to planned expenses also helps to enforce contract compliance. The system
overwrites any existing expense rate entries in the service contract, and updates it to the service contract rate
existing at the time the expense is created.

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130 PUBLIC Expense Management
The figure above describes how a combination of service contracts, service items, and service contract line
items provide an expense rate for a service negotiated with a service provider. Service contracts are usually
negotiated on an annual basis with the service provider.

Service contract data is determined during each of the following steps of expense execution:

● Creation of planned expenses in the pricing trading contract

● Change of planned expenses in the pricing trading contract
● Creation of logistic trading contract (LTC) which copies the pricing trading contract (PTC) expenses to the
LTC
● Automatic or manual accrual of planned expenses
● Settlement of planned expenses

Prerequisites

You have maintained the condition types that correspond to expenses. On the SAP Easy Access screen, choose
Agricultural Contract Management Expense Management Service Contract Determination for Expenses

 Note

If you want to recreate the service contract information at any point after the expenses are entered at
pricing contract level, you must make some changes to the auto accrual rules. On the SAP Easy Access

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Expense Management PUBLIC 131
 screen, choose Agricultural Contract Management Expense Management Maintain Auto Accrual
Rules and select the select the Reeval checkbox. By selecting this checkbox, you ensure that the service
contract information is reevaluated for the expense class.

6.2 Invoice Router

Use

The invoice router acts as a single gateway for handling both trade-relevant expenses and non-trade-relevant
expenses. The invoice router decides, on the basis of your input parameters, whether an expense is trade-
related or non-trade-related, and routes you to the relevant interface (either MIRO in the case of non-trade
relevant expenses, or GTM in the case of trade-relevant expenses).

The invoice router also displays the following information for trade relevant expenses:

● Accrued VBDs to be settled and their corresponding item details

● Pricing trading contracts and logistic trading contracts related to the accrued VBDs and their logistic
documents
● VBDs related to the invoice reference number that were settled using the invoice

Prerequisites

You have activated the Determine Transaction to be Called BAdI in Customizing for Agricultural Contract
Management under Enhancements Using Business Add-Ins Expense Management Invoice Router

Example

1. On the SAP Easy Access screen, choose Expense Management Invoice Router
2. Enter the relevant details choose the Execute icon.
If you enter non-trade information, you are brought to the MIRO interface where you can settle the
expense. If you enter trade relevant information, you are brought to the GTM invoice router interface. From
the GTM invoice router screen, you can settle the expense in the following ways:
○ Settle With GTM
○ Settle With The Expense Workbench

More Information

For more information, see SAP Library for SAP ERP on SAP Help Portal at http://help.sap.com/erp . Choose
SAP ERP Central Component. Under Application Help, open SAP Library and choose SAP ERP Central

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132 PUBLIC Expense Management
Component Logistics Global Trade Management Trading Execution Worbench Processing Documents in
TEW

6.3 Automatic Accrual of Expenses during Contract

Execution

Use

Expense Management offers the following two ways to accrue an expense:

● Manually - through the initiation of an expense accrual on demand

● Automatically - through the initiation of an expense accrual based on the generation of a logistics
document

You can automatically accrue expenses that are available in the global trade management (GTM) contract. You
can choose which type of expenses to accrue, and at what point of the contract execution process (for
example, at the time of delivery or goods movement), to accrue these expenses. You accrue an expense based
on the following attributes:

● Company Code
● Plant
● Material Number
● Mode of Transport
● Expense Class
● Document Type (delivery, goods receipt , goods issue)

Prerequisites

You have maintained the rules for the automatic accrual of expenses in Customizing for Agricultural Contract
Management under Expense Management Maintain Auto Accrual Rules

Activities

In the Planned Expenses tab of the trading contract, you plan your expenses. During call-off, the planned
expenses are copied to the call-off ticket. You have already maintained the expenses you want to accrue
automatically for follow-on documents in Customizing, so when a trading contract is maintained with those
same expenses, they will automatically be accrued.

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Expense Management PUBLIC 133
6.4 Document Flow

Use

Document flow gives you an overview of how far a commercial transaction has progressed as well as the follow-
on documents related to the transaction. Depending on where you choose to view the document flow from, the
system displays all preceding and follow-on documents on the document flow screen. From the Document Flow
screen you have the following options:

● Display Document - you can select any document in the document flow tree and view the document details
and the current status of the document
● Display Document Flow - you can select any node in the document flow tree and view the document flow of
related documents
● Assignment Network Flow - you can view the assignments of pricing trading contracts commodity items
● Personal Settings - allows you to filter the document flow tree. The following are the filter options:
○ Display Rejected/Cancelled VBDs
○ Display Recognition

The document flow tree also displays the document type and number, the ID of the user who created the
document, the creation date, and the document status.

Integration

The following table shows the different documents from where you can view the document flow, how to
navigate to the document flow functionality, and the documents that are displayed in the document flow tree:

Document Document Flow Navigation Steps

Application Document ● Pricing TC 1. From the SAP Easy Access menu,

● Logistics TC choose Agricultural Contract
● Vendor Billing Document Management Contract
● Sales Order
Application Maintain Application
● Call-Off Ticket
Document .
● Application Document
2. Choose Display.
● Outbound Delivery Document
3. Enter the application document
● Goods Issue Document
● Settlement Document number and choose .

● Washout TC 4. Choose the Items tab.

● Billing Document 5. In the Master Item table, select an

● Expense Accrual item, and choose .

● Expense Settlement
● Revenue Recognition

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134 PUBLIC Expense Management
Sales Order ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Sales and
● Vendor Billing Document Distribution Sales Order .
● Sales Order 2. Choose Display.
● Call-Off Ticket 3. Enter the sales order number and
● Application Document press Enter.
● Outbound Delivery Document 4. Select an item from the sales order
● Goods Issue Document
overview window and choose .
● Settlement Document
5. Choose the Global Trade
● Washout TC
Management tab.
● Expense Accrual
6. Choose the Document Flow tab.
● Expense Settlement
7. Choose .
● Revenue Recognition

Purchase Order ● Pricing TC 1. From the SAP Easy Access menu,

● Logistics TC choose Logistics Materials
● Vendor Billing Document Management Purchasing
● Purchase Order
Purchase Order .
● Call-Off Ticket
2. Choose Display.
● Application Document
● Inbound Delivery Document 3. Choose .

● Goods Receipt Document 4. Select an item from the purchase

order overview window and choose
● Settlement Document
● Washout TC .

● Invoice 5. Choose the Global Trade

● Expense Accrual Management tab.

● Expense Settlement 6. Choose the Document Flow tab.

● Revenue Recognition 7. Choose .

Outbound Delivery Document ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Logistics
● Vendor Billing Document Execution Outbound Process
● Sales Order Goods Issue for Outbound Delivery
● Call-Off Ticket
Outbound Delivery .
● Application Document
2. Choose Display.
● Outbound Delivery Document
3. Enter the outbound delivery docu­
● Goods Issue Document ment number and press Enter.
● Settlement Document 4. On the Item Overview tab, select an
● Washout TC
item and choose .
● Billing Document
5. Choose the Global Trade
● Expense Accrual
Management tab.
● Expense Settlement
6. Choose the Document Flow tab.
● Revenue Recognition
7. Choose .

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Expense Management PUBLIC 135
Inbound Delivery Document ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Logistics
● Vendor Billing Document Execution Inbound Process
● Purchase Order Goods Receipt for Inbound Delivery
● Application Document
Inbound Delivery Display .
● Inbound Delivery Document
2. Choose Single Document.
● Goods Receipt Document
3. Enter the inbound delivery docu­
● Settlement Document ment number and press Enter.
● Invoice 4. On the Item Overview tab, select an
● Expense Accrual
item and choose .
● Expense Settlement
5. Choose the Global Trade
● Revenue Recognition
Management tab.
6. Choose the Document Flow tab.

7. Choose .

Goods Issue Document ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Materials
● Vendor Billing Document Management Inventory
● Sales Order
Management Material
● Call-Off Ticket
Document .
● Application Document
2. Choose Display.
● Outbound Delivery Document
3. Enter the material document num­
● Goods Issue Document
ber and press Enter.
● Settlement Document
● Washout TC 4. Select an item and choose .

● Billing Document 5. Choose the Global Trade

● Expense Accrual Management tab.

● Expense Settlement 6. Choose the Document Flow tab.

● Revenue Recognition 7. Choose .

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136 PUBLIC Expense Management
Goods Receipt Document ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Materials
● Vendor Billing Document Management Inventory
● Purchase Order
Management Material
● Call-Off Ticket
Document .
● Application Document
2. Choose Display.
● Inbound Delivery Document
3. Enter the material document num­
● Goods Receipt Document
ber and press Enter.
● Settlement Document
● Washout TC 4. Select an item and choose .

● Expense Accrual 5. Choose the Global Trade

● Expense Settlement Management tab.

● Revenue Recognition 6. Choose the Document Flow tab.

7. Choose .

Billing Document ● Pricing TC 1. From the SAP Easy Access menu,

● Logistics TC choose Logistics Sales and
● Vendor Billing Document Distribution Billing Billing
● Sales Order
Document .
● Call-Off Ticket
2. Choose Display.
● Application Document
3. Enter the billing document number
● Outbound Delivery Document
and press Enter.
● Goods Issue Document
4. Select an item and choose .
● Settlement Document
5. Choose the Global Trade
● Washout TC
Management tab.
● Billing Document
6. Choose the Document Flow tab.
● Accounting Document
● Expense Accrual 7. Choose .
● Expense Settlement
● Revenue Recognition

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Expense Management PUBLIC 137
Invoice Document ● Pricing TC 1. From the SAP Easy Access menu,
● Logistics TC choose Logistics Material
● Vendor Billing Document Management Logistics Invoice
● Purchase Order
Verification Further
● Call-Off Ticket
Processing .
● Application Document
2. Choose Display Invoice Document.
● Inbound Delivery Document
3. Enter the invoice document num­
● Goods Receipt Document
● Settlement Document ber and fiscal year and choose .

● Washout TC 4. On the PO Reference tab, select PO

- Order Price Quantity from the
● Invoice
Layout dropdown menu.
● Expense Accrual
5. Double click on the purchase order
● Expense Settlement
number.
● Revenue Recognition
6. Select an item and choose .
7. Choose the Global Trade
Management tab.
8. Choose the Document Flow tab.

9. Choose .

STO Document ● Inter/Intra Purchase Pricing TC 1. From the SAP Easy Access menu,
● Call-Off Ticket choose Logistics Material
● Stock Transfer Order (STO) Management Purchasing
● Inbound Delivery
Purchase Order .
● Goods Receipt
2. Choose Display.
● Application Document
3. From the header level section,
● Settlement Group (H)/Settlement
choose the Global Trade
Unit (I)
Management tab.
● Agency Billing Document
4. Choose the CD Doc Flow pushbut­
● MM Invoice ton.
● Application Document
● Expense Accrual
● Expense Settlement
● Revenue Recognition

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138 PUBLIC Expense Management
 ● Mirror Sales Pricing TC
● Outbound Delivery
● Goods Issue
● Application Document
● Settlement Group (H)/Settlement
Unit (I)
● Agency Billing Document
● SD Billing Document
● Expense Accrual
● Expense Settlement
● Revenue Recognition

More Information

Displaying Application Documents [page 191]

Nomination Maintenance [page 163]

Displaying Commodity Item Details [page 54]

Revenue Recognition and Purchase Realization Monitors [page 252]

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Expense Management PUBLIC 139
7 Call-Off

Use

When a purchase or a sales order is created, the system generates a logistics trading contract in the
background. At the time of such contract creation, a pricing TC is agreed upon in consensus with the
counterparty. This pricing TC is assigned to the logistics TC during the call-off process. You can estimate
whether the commodity has been fully delivered or not based on the called off quantity on a contract.

Integration

● To copy the expenses from the pricing TC to the logistics TC during call-off process, an application
programming interface (API) is provided. If an expense is already present on the logistics TC, then the
expense is not overwritten.
● The open quantity, which is also referred to as the available to call-off quantity, determines the maximum
amount of quantity that can be washed out or canceled.
● Check the approval status of the Purchase or Sales Trading Contract as only an approved contract can be
used during the call-off process. If a particular contract is not Approved, then a message is displayed and
you will not be able to continue with the call off process. For more information on Contract Approval, refer
to Approving a Commodity Contract [page 46]

Features

● You can call-off a contract in the following ways:

○ From the Create Contract screen. For more information, see Calling Off Contracts [page 142].
○ From the Call-off Workcenter. For more information, see Call-Off Workcenter [page 142].
● The modes available to call-off are automatic, proposed, and manual modes. For more information see,
Call-Off Modes [page 141].

Example

If there is a contract for quantity of 1000 MT for yellow corn, a sales order is created for 50 MT, 60 MT, 90 MT
on different delivery dates respectively. Then the call-off quantity is 200 MT and the open quantity is 800 MT. If
the discount premium quality schedule (DPQS) values are to be applied on the first shipment and the delivered
quantity is 45 MT, then the open quantity further changes to 805 MT.

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140 PUBLIC Call-Off
More Information

● Call-Off Modes [page 141]

● Reversal of Call-Off [page 143]

7.1 Call-Off Modes

Use

During the call-off process, there are different modes by which the system generates a pricing trading contract
or you can select a trading contract (TC). The modes are automatic mode, proposed mode, and manual mode.

Features

● Automatic call-off
The system defaults the most preferred pricing TC for a line item on the contract.
● Proposed call-off
The system generates a list of pricing TCs that are applicable to the contract. You can select one or more
contracts from the list. The capability to split the line item quantity across the multiple contracts is
available in this mode.
● Manual call-off
If you are not satisfied with the pricing TCs generated by the system in the above two modes, you can use
this mode to manually select the pricing TC. To do this, you need the contract number or the external
reference number of the counterparty.

More Information

Calling Off Contracts [page 142]

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7.1.1 Calling off Contracts

Context

You can perform a call-off only from the item level of an order. Call-off cannot occur for contracts that have pre-
payment data or for contracts that are on hold due to undeclared explicit optionalities.

Procedure

1. On the SAP Access Screen choose Agricultural Contract Management Contract Management
Commodity Contract Change .
2. Enter the contract number and choose Find.
3. Choose Overview.
4. Double click the number in the Item Number column.
5. Choose the Call-Off tab page.
6. Enter the required data.
7. Save your changes.

7.1.2 Call-Off Workcenter

Use

You can use this transaction to create, reverse, and reassign call-offs.

Features

● Calling Off Contracts

You can create a call-off from the SAP Easy Access screen, by choosing Agricultural Contract
Management Contract Application Call-Off Call-Off Workcenter . This option allows you to create an
order for the listed contracts with open quantity and perform a call-off for the same.
● Reverse an Existing Call-Off
You can reverse an existing call-off for an order.
● Reassign Invalidated Call-Off
Call-off is re-validated when you make changes at the order item. For example, if the item quantity is
decreased and the existing call-off quantity is more than the item quantity, then the call-off is reversed.

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 You can view the list of all call-offs that exist on a sales or purchase order in the Call-Off Workcenter. If call-
off exists, the status of the order is 'green' and if the call-off does not exist on the order, the status is 'red'.
You can perform a call-off on those which are having 'red' status.

More Information

Calling Off Contracts [page 142]

7.2 Reversal of Call-Off

Use

An assignment is made between the order and the pricing trading contract commodity item at the time of call-
off. You may have to reverse this during contract application. In such a case, the contract application process
reverses the original call-off and applies the load to a new pricing TC. It prevails under the following conditions:

● To correct the initial call-off

● No loads arrive for the pricing TC and the latter is to be canceled
● When sales or purchase order is reversed or changed
● The contract application process suggests that the load received or shipped against an order should be
applied to a different contract

 Note

Goods movements are not reversed during reversal of call-off. When the call-off is reversed, no document
flow is visible and no linking is available.

Prerequisites

If the call-off was initially firmed by selecting the Firming checkbox, you have deselected the checkbox to
unfirm and to allow the reversal of call-off.

Features

Manual Reversal of Call-Off

● Allows for a new call-off to be made against a contract

● Load is treated as an unscheduled load and is either applied to the pricing TC by the contract application
process or is applied to a spot contract

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● Changes made on the item level of the order

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8 Load Data Capture

Use

Load Data Capture is one of the key functional areas within the SAP Agricultural Management solution. It
comprises the Load Data Capture (LDC) transaction and the Orchestration Framework [page 156] (OF) to
streamline the capturing, on arrival or departure, of certain attributes of a purchased or sold load. These
attributes are used to determine whether a load conforms to the requirements of the contract in a planned
scenario, to select an appropriate contract to fulfill, or to generate a spot contract or unassigned load in
unplanned scenarios. Load Data Capture allows users to capture weight, grade, and other logistical data for
bulk shipments (both inbound and outbound) of agricultural commodity products, while the Orchestration
Framework oversees the generation of follow-on documents.

Integration

● The Load Data Capture component is integrated with the Contract Application and Contract Settlement
components.
● Check the approval status of the Trading Contract as only an approved contract can be used during the
LDC creation process. If the ACM contract is not Approved, then a message is displayed asking you to
remove the ACM contract number. For more information on Contract Approval, refer to Approving a
Commodity Contract [page 46]

Features

● Captures, on arrival or departure, quality characteristics information for a purchased or sold load
● Enables the addition of custom tabs to the main LDC screen in order to capture location-specific data
● Provides fast-entry screens for changing and updating event data
● Validates the captured data and determines the applicable scenario
● Creates follow-on documents appropriate to the scenario, as well as the application document

8.1 Load Data Capture (LDC)

Use

Once a purchased load arrives, certain attributes of the load must be captured. These attributes are used to
determine whether a load conforms to the quality, optionality, and tolerance requirements of the contract in a

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planned business scenario, and to select an appropriate contract to fulfill or generate a spot contract in
unplanned scenarios.

Integration

● Load Data Capture is integrated with the Orchestration Framework to trigger a call to a stack of functions.
For more information, see the component documentation for Load Data Capture [page 145].
● Load Data Capture is integrated with the SAP application document. The application document is used to
link a load quantity (captured during LDC) to a pricing contract during the application process. For more
information, see the documentation for Load Data Capture: Integration with Application Document [page
155].
● Load Data Capture is integrated with the nomination,, the scheduling and communication document used
in the Trader's and Scheduler's Workbench (TSW). A load can be captured using the nomination as the
reference document. For more information, see the documentation for Load Data Capture: Integration with
Nomination and TSW [page 154].

Features

● Enables data entry for a load through a fast entry screen

● Captures quality characteristics data for the load
● Stores multiple weights and grades characteristics for use in downstream documents such as the
settlement and application documents
● Utilizes load information from external sources
● Uniquely identifies each specific load event in the system
● Captures customer-specific details for the load through the use of an Add-On Tabs Framework
● Ensures that all subsequently generated system documents will reference the load

8.1.1 Load Data Capture Workcenter

Use

The Load Data Capture (LDC) Workcenter is a repository where users can enter and update load information.
Users can configure the available settings to capture inbound and outbound event data, determine material,
perform various maintenance tasks for LDC objects [page 147], and trigger the Orchestration Framework
[page 156] to generate follow-on logistical documents.

Prerequisites

Before using the LDC Workcenter, you must configure your settings In Customizing for Load Data Capture and
the Orchestration Framework under SAP Agricultural Contract Management Load Data Capture . Here,

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you can define, for example, the LDC event type, the analysis type, the application instruction, and MoT-
relevant attributes, so that these values can be recorded in the LDC Workcenter.

Features

The LDC Workcenter provides fast entry screens for creating and changing events and event details,
transportation details, weights details, analysis details, and other general information for a load.

Activities

● Create an LDC object

For more information, see Creating LDC Objects (Direct Entry) [page 148]
● Change or modify an existing LDC object
For more information, see Changing LDC Objects [page 151]
● Make an existing LDC object obsolete
For more information, see Making LDC Objects Obsolete [page 152]
● Add custom-specific tabs to the LDC main screen
For more information, see Adding Tabs to LDC Screens [page 152]

8.1.1.1 Load Data Capture (LDC) Object

Definition

A Load Data Capture (LDC) object is a data record containing an independent set of quality information
characteristics and behavior (for example, weight and analysis details) that is referenced by the system during
event processing. One LDC object belongs to one delivery line item that follows the object through the life cycle
of a load.

You create an LDC object to capture data for an event (that is, a load or unload event) in the Load Data Capture
Workcenter. Once you have successfully created an LDC object, you can go on to perform further maintenance
tasks in the workcenter, for example, changing or editing the LDC object, displaying it, or setting it to Obsolete.

When creating a new LDC object or editing an existing LDC object, you can choose from the following ways in
which to enter data into the LDC screen:

● Direct Entry [page 148]

You use this method when entering only one weight and analysis for one LDC event.

● Fast Entry [page 149]

You use this method when entering weight/analysis vertically for one LDC event.

● Flat Entry Analysis [page 150]

You use this method when entering analysis data vertically for more than one LDC event.

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● Mass-Maintenance [page 150]

You use this method when entering weight/analysis/event details for more than one LDC event, when the event
data is the same across all events

Integration

In a Back-to-Back scenario, where inbound delivery creation or nomination [page 163] confirmation triggers
the creation of an LDC object in the background with minimum basic information available at nomination/
delivery level, this is called a 'shell' LDC object. The nomination provides a link to the 'shell' LDC object in
question.

More Information

To create an LDC object for a Regular Spot or Accumulate to Own contract, see the documentation for Creating
Load Data Capture Objects [page 181].

8.1.1.1.1 Creating LDC Objects (Direct Entry for Planned

Contracts)

Use

This procedure details the direct entry method for creating LDC objects [page 147] in the Load Data Capture
Workcenter.

For information about the other possible entry methods, see the documentation for the following procedures:

● Fast entry method [page 149] (used when entering weight/analysis data vertically for an event)
● Flat entry analysis method [page 150] (used when entering analysis data vertically for more than one LDC
event)
● Mass-maintenance method [page 150] (used when entering weight/analysis/event details for more than
one LDC event with common data)

Procedure

To create an LDC object for a planned contract using the direct entry method (that is, the method you use
when entering only one weight and analysis for one LDC event), complete the following steps:

1. In the SAP Easy Access menu, choose Agricultural Contract Management Load Data Capture
Maintain LDC Alternatively, you can enter transaction /ACCGO/UIS_WC to call the Load Data Capture
Workcenter.

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2. Choose Create LDC Object. In the LDC Document Reference screen section, enter either the contract
number and item number, SO/PO number and item number, or nomination and item number. The
remaining data, including the application instruction, defaults from the planned document (Exception: for
contracts, you must select an entry for the Material field). Check the defaulted data to ensure it is correct.
3. In the LDC General Information screen section, enter an LDC type and event, a mode of transport, and a
storage location. (Exception: if the event in question is a third party purchase TTO load event, do not enter
a storage location.)
4. In the Transportation Details screen section, enter any transportation data as required.
In the Additional Information screen section, enter an event date (if different from current date. The event
date controls when the LDC event occurs). Choose . Make a note of the LDC object ID.
5. Select the LDC object ID. In the Weights Details tab page, select the certificate category, UoM, gross
weight, and any other details as necessary, and choose .
6. In the Analysis Details tab page, select the certificate category, analysis type, dispute status, and any other
details as necessary. Save your entries. A message appears to inform you that the LDC object data has
been saved successfully.
7. Release the event. To do this, click Back, and choose Release LDC Event. The object status flag turns to
green, with the status 03: Released. Choose . The event is now released to the Orchestration Framework
[page 156] for further processing.

8.1.1.1.1.1 Creating LDC Objects (Fast Entry for Planned

Contracts)

To create an LDC object [page 147] for a planned scenario using the fast entry method (that is, the appropriate
method when entering weight/analysis data vertically for one LDC event), complete the following steps:

1. Complete steps 1 to 5 as detailed in the documentation for creating an LDC object using the direct entry
[page 148] method.

2. Select the LDC object and choose for Weights Details. Select, from the dropdown list, the certificate
category, unit of measure, gross weight, and enter any other details as necessary. Check the data, and
choose .

3. Next, select the LDC object and choose for Analysis Details. Select, from the dropdown list, the
certificate category, analysis type, dispute status, and enter any other details as necessary. Choose .
4. To release the LDC object, click Back. The object status flag turns to green, with the status 03: Released .
Save your entries. The object is now released to the Orchestration Framework [page 156] for further
processing.

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8.1.1.1.1.2 Creating LDC Objects (Flat Entry Analysis for
Planned Contract)

To create an LDC object [page 147] for a planned contract using the flat entry analysis method (that is, the
method you use when entering analysis data vertically for more than one LDC event), complete the following
steps:

1. Complete steps 1 to 5 as detailed in the documentation for creating an LDC object using the direct entry
[page 148] method.

2. Select the LDC object and choose . Select, from the dropdown list, the certificate category, dispute
status, and enter any other details as necessary. (Alternatively, for multiple line entries, you can cut and
paste data from a spreadsheet to the flat entry screen.) Choose .
3. To release the LDC object, click Back. The object status flag turns to green, with the status 03: Released .
Choose . The object is now released to the Orchestration Framework [page 156] for further processing.

8.1.1.1.1.3 Creating LDC Objects (Mass Maintenance for

Planned Contracts)

To create an LDC object [page 147] for a planned contract using the mass-maintenance method (that is, the
method you use when entering weight/analysis/event details for more than one LDC event with common data),
complete the following steps:

1. Complete steps 1 to 5 as detailed in the documentation for creating an LDC object using the direct entry
[page 148] method.

2. Select the LDC objects and choose for Event Details. In the Additional Information screen area, enter an
event date (if different from current date. The event date controls when the LDC event occurs). Choose .

3. Choose for Weights Details. From the dropdown list, select the certificate category, unit of measure,
gross weight, and any other data common for all selected LDC objects. Check the data, and choose .

4. Choose for Analysis Details. From the dropdown list, select the certificate category, analysis type,
dispute status, and any other data common for all selected LDC objects. Check the data, and choose .
5. To release the LDC object, click Back. The object status flag turns to green, with the status 03: Released.
Choose . The object is now released to the Orchestration Framework [page 156] for further processing.

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8.1.1.1.2 Changing LDC Objects

Prerequisites

● You are logged on to the system in the Load Data Capture user role.
● One or more LDC objects have already been created.

Context

An existing LDC object [page 147] can only be changed (that is, modified or updated) or displayed in the
following situations:

● The object status is OF Execution Successful or OF Execution Failed

For objects with these statuses, you can enter new weight and grade information, and can change existing
event details.
● The object status is OF Determination Triggered or Draft
For objects with these statuses, you can change weight, analysis, and transportation information, and can
make changes to certain event details.

Note that if the object status is Obsolete, you cannot make any changes to the LDC object in question.

Procedure

1. In the SAP Easy Access menu, choose Agricultural Contract Management Load Data Capture
Maintain LDC . Alternatively, you can enter transaction /ACCGO/UIS_WC to call the Load Data Capture
Workcenter. Choose Change LDC Object.
2. Choose a method to edit the object, and enter any changes to the data as required. (For information about
the methods available, see the documentation for Load Data Capture (LDC) Object [page 147].)

3. Once you have made your changes, release the LDC object. Click Back, and choose to save the object.
The object status flag turns to green, with the status 03: Released. Choose . The object is now released
to the Orchestration Framework [page 156] for further processing.

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8.1.1.1.3 Making LDC Objects Obsolete

Prerequisites

You are logged on to the system in the Load Data Capture user role.

Context

You can make an LDC object obsolete at any time. However, if the status flag is red or chequered, you must
ensure that the objects created during Orchestration Framework [page 156] (OF) processing are manually
reversed and deleted in the reverse order they were created. In other words, you must manually reverse the last
document created (check the OF log), and work back from there.

Procedure

1. In the SAP Easy Access menu, choose Agricultural Contract Management Load Data Capture
Maintain LDC . Alternatively, you can enter transaction /ACCGO/UIS_WC to call the Load Data Capture
Workcenter.
2. Choose Change LDC Object. In the Change LDC Object screen, you can search by date for the object(s) you
want to make obsolete in the Quick Search screen section. Alternatively, you can call up the object(s) in
question by entering the LDC type or status in the LDC General Information screen section, or by entering
the event details as relevant in the LDC Event Information screen section.

3. To make the object(s) in question obsolete, select the LDC object line item, and choose .

8.1.1.1.4 Adding Tabs to LDC Screens

Prerequisites

To use the Add-On Tabs framework, users must first execute the BAdI Process User-Defined Add-On Tabs for
LDC Screens to create the BAdI implementation for /ACCGO/ADD_ON_TAB_UIS. This is done in Customizing
for SAP Agricultural Contract Management, under Enhancements Using Business Add-Ins Load Data
Capture . This multiple use BAdI allows users to add tabs to the Create and Change screens in the LDC
Workcenter. It is called when the screen in question is being created, during processing and before output
event. Implement the methods to enable the functions of the new screen.

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Context

SAP Agricultural Contract Management provides an Add-on Tabs framework as part of Load Data Capture
[page 145] (LDC), whereby users can add up custom tab pages to the LDC main screen at event level in the
Load Data Capture Workcenter [page 146].

Customers can add up to two tabs, but if Brazilian localization is active in the system, only one extra tab will be
available for adding, since the localization will be using the other tab. In order to use this framework, users
must design their own screens and write the flow logic of these screens to update the appropriate structures
and tables.

8.1.2 Load Data Capture: Vendor Split

Use

Vendor split allows you to split ownership from one vendor with 100% ownership to multiple vendors. You can
perform vendor split for both commingled and purchase scenarios. You can perform a vendor split for an event
in the Load Data Capture (LDC) Workcenter [page 146] maintaining the percentage of ownership for the
original vendor, and then splitting this between multiple vendors. To do this, you must first set up the vendor
split rule in the Business Rules Framework plus (BRFplus) Workbench. You can also define which vendor to
process in the purchase order created after the LDC is released. (The default purchase order vendor is
calculated using the LDC header vendor and application instruction.)

The following types of vendor split are available:

● Ad-hoc split: This split is defined during load data capture. You manually define which vendors are included
in the split, and the quantities (or percentage) of the split. The ad-hoc split allows you to create and delete
vendor lines as needed.
● Split profile: This split is defined using a new business rule. The business rule defines what splits are usual
for a given vendor. If the combination of material, vendor, and event location is configured in the business
rule, these splits are automatically retrieved and shown during load data capture. You can then perform a
split profile in the LDC workcenter.
● Split at application: This split is defined at application. You can add comments to the LDC outlining the
vendors, percentages, and quantities, as well as the reasons why the split is delayed. These comments are
visible in the MAW.

 Note

When creating an LDC, if you do not want to perform a split, you can select the Block Split check box. This
hides all vendor split information from the LDC.

To perform a vendor split, the LDC must have one of the following application instructions:

● 03: Existing Contract

● 05: Regular Spot
● 06: Accumulate to Own
● 07: Accumulate to Store
● 10: Unassigned

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Before you create an event to split amongst vendors, you must first set up the rule for the vendor split
functionality. Then, when you create the event, you can select the appropriate split type for the unload event in
the LDC workcenter. The Orchestration Framework [page 156] creates a commingled or purchasing posting
and application document with one or more line item per vendor, depending on the split rule. For vendor splits,
depending on the application instruction you select, the result is always a commingled application document or
a purchasing application document.

Activities

1. Set up the vendor split rule in the Business Rules Framework plus (BRFplus) Workbench (transaction /
nBRF+) To do this, add the catalog /ACCGO/RULES_CATALOG ( Maintain rule data) to your user, and set up
the vendor split rule ( Vendor Split UI01).

 Note

You only perform this activity if you want to perform a split profile.

8.1.3 Load Data Capture: Integration with Nomination and

TSW

Use

During Load Data Capture [page 145], certain attributes of a purchased load are captured, in order to
determine whether a load conforms to contract requirements (or to generate a spot contract in an unplanned
business scenario). A load can be captured against different reference documents, including the nomination
[page 163]. The nomination is a scheduling and communication document used in the Trader's and
Scheduler's Workbench (TSW). The TSW oversees stock projection and the planning and scheduling of bulk
shipments through the use of nominations, allowing users of SAP Agricultural Contract Management to
schedule bulk shipments of commodity products while taking into account supply, demand, and available
transportation. A TSW location is a node point on the transport system and is used as an organizational entity
for which certain information can be defined and later defaulted by the system in subsequent TSW processes.
You define LDC-relevant TSW locations when setting up the master data for Load Data Capture.

Activities

● In the SAP Easy Access screen, maintain the TSW locations under SAP Agricultural Contract
Management Load Data Capture Maintain TSW Locations
● In the SAP Easy Access screen, maintain the LDC-relevant TSW locations under SAP Agricultural
Contract Management Load Data Capture Set Up Master Data for LDC

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● In Customizing for Load Data Capture, define the ticket type to be used for TSW ticket creation by different
calling applications, including LDC ( SAP Agricultural Contract Management Load Data Capture
Define TSW Ticket Types for OF Events)
● In Customizing for Logistics Execution, assign functions to groups under Logistics Execution TSW
General Settings Junction Functions Define Junctions .
● In Customizing for Nomination, configure your settings as necessary under Logistics Execution TSW
General Settings Nomination .

8.1.4 Load Data Capture: Integration with Application

Document

Use

The application document is an intermediate SAP document that is created after receipt or post goods issue. It
facilitates contract application and settlement to allow the application of, for example, discount premium
quality schedules [page 14] (DPQS), the evaluation of tolerances, and the evaluation of optionalities.

The application document contains vendor and customer, material, quantity, and quality details, as well as
other application details such as quantity adjustments. Once an event release has been triggered, the
application document is created through the Orchestration Framework [page 156] and is used to link a load
quantity to a pricing contract during the application process. It can later be updated with Load Data Capture
[page 145] (LDC) and nomination information, where available. During load and unload events, the application
document number is used to evaluate final application.

More Information

Application Document [page 168]

8.1.5 Adding Tabs to LDC Screens

Prerequisites

To use the Add-On Tabs framework, users must first execute the BAdI Process User-Defined Add-On Tabs for
LDC Screens to create the BAdI implementation for /ACCGO/ADD_ON_TAB_UIS. This is done in Customizing
for SAP Agricultural Contract Management, under Enhancements Using Business Add-Ins Load Data
Capture . This multiple use BAdI allows users to add tabs to the Create and Change screens in the LDC

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Workcenter. It is called when the screen in question is being created, during processing and before output
event. Implement the methods to enable the functions of the new screen.

Context

SAP Agricultural Contract Management provides an Add-on Tabs framework as part of Load Data Capture
[page 145] (LDC), whereby users can add up custom tab pages to the LDC main screen at event level in the
Load Data Capture Workcenter [page 146].

Customers can add up to two tabs, but if Brazilian localization is active in the system, only one extra tab will be
available for adding, since the localization will be using the other tab. In order to use this framework, users
must design their own screens and write the flow logic of these screens to update the appropriate structures
and tables.

8.2 Orchestration Framework

Use

In certain scenarios, deliveries or goods movements occur prior to an order having been generated (unplanned
scenarios), or require mirroring of existing documents (intercompany scenarios). In these cases, many
documents may need to be created to ensure that a full document trail exists for the quantity moved. These
documents may be generated manually, but a level of automatic generation is required to support timeliness
and to reduce manual intervention.

The Orchestration Framework (OF) is a tool that automates the logistics process. A configurable framework
governed by business rules, the Orchestration Framework is used to determine the business scenarios in
question. On event completion, the OF is called. Using information derived from the Load Data Capture [page
145] (LDC) screen, the nomination [page 163] screen, or the Manual Application Workcenter screen, the OF
validates the quantities involved and determines the applicable scenario. It then calls the stack of services
configured for that scenario to create logistical documents, as well as the application document that is used for
settling payment with the vendor or customer. If the document postings fail, the Recovery Report retriggers the
process. Note that the OF is run as a background processing engine. There is no user interface.

Integration

● Load Data Capture is the front-end to the OF. The OF determines logistical documents for each application
instructions defined during LDC. On event release, the OF reads the application instruction defined for an
LDC and determines various possible scenarios.
● The OF supports 3rd Party Purchase, 3rd Party Sales, Back-to-Back, Inter/Intra Company Sales, and
Returns scenarios.

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● The OF uses standard TSW ticketing functionality to create downstream documents. The TSW ticket type
identifies from which application or source (LDC, nomination, or application document) a ticket originates
or is created.

Features

● Orchestration Execution
Based on the data in the LDC screen, the OF determines the business scenario type, transaction type, title
transfer, and whether a new vendor is required.

● Orchestration Determination
During execution, the OF oversees the creation of follow-on documents, determines the material, and
updates the LDC status.
● Orchestration Framework Automation
This helps you to automatically cancel documents generated during OF process. This automation
considerably reduces the need for manual intervention in reversing the application document, thereby
reducing the possibility of errors and increasing the Load Data Capture process agility.
● Recovery Report
If a service stack fails at any point, the recovery report reprocesses the follow-on stack and completes the
document postings.

8.2.1 Document Generation

Use

In certain scenarios, logistical documents need to be created to ensure that a full document trail exists for
quantities moved or changed. While these documents can be generated manually, the automatic document
generation provided by SAP Agricultural Contract Management (with the integration of the Trader's and
Scheduler's Workbench [TSW]) supports timeliness and reduces manual intervention. The Orchestration
Framework [page 156] (OF) reads the data captured during Load Data Capture [page 145] (LDC) to determine
the business scenario in question. It then calls the stack of services configured for that scenario in order to
generate follow-on documents. The stack and sequence of these functions can vary: a wide range of scenarios
are supported, depending on user configuration, and different documents are required for different scenarios.

The application instruction defines the way in which a load is recorded during LDC. In the table below, the
possible LDC application instructions are listed, along with their corresponding mandatory documents.

Application Instruction Required Documents

Existing Contract The application document is applied to an existing contract

(using application rules)

Open Contract The application document is applied to an existing sales or­

der or purchase order (using application rules).

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Application Instruction Required Documents

Inter/Intracompany Stock transport order (STO) for load

STO for unload

Unassigned None: The load is processed as commingled stock.

Accumulate to Store None: The load is processed as commingled stock

Regular Spot An automatic (spot) contract for an unplanned scenario is

created. In this case, the application documents are marked
'Awaiting Spot' in the background, until further processing is
performed in the Manual Application Workcenter to generate
the spot contract.

Accumulate to Own An accumulate to own contract is generated upon receiving

the first load from a vendor, after which the quantities from
future loads will be accumulated or updated to that contract.

Return Order/delivery return document for a purchase return or

sales return

In Store Sales Combines the steps to create LDC for a Sales scenario fol­
lowed by Spot Purchase and Accumulate to Own scenario

In Store Purchase Generates the Accrual Application Document along with Pur­
chase Application Document

Prerequisites

● In Customizing for Load Data Capture, you have defined the application instructions as required under
SAP Agricultural Contract Management Load Data Capture Define Application Instructions .
● In the Business Rules Framework plus (BRFplus) Workbench (transaction /nBRF+), you added the
catalog /ACCGO/RULES_CATALOG ( Maintain rule data) to your user, and have set up the rules for OF
determination and execution.

Process

Orchestration determination

The Orchestration Framework is instructed by the data captured by the LDC screen (namely, the event ID, the
application instruction, the event type, and the status of the event, amongst others) to determine the scenario
in question. Once the scenario has been established, the OF calls the stack of services configured for that
scenario in order to carry out further processing.

Orchestration execution

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The OF uses an interface ( /ACCGO/EXECUTE_OF) common to the entire API. This ensures flexibility in function
module (FM) creation and allows customers to create as many FMs as needed with the service stack (junction
function). BRF+ rules are used to configure the specific movement scenario for OF execution. All standard
logistic documents can be automatically created through the FM stack. Customers can use the sample FMs
delivered by SAP Agricultural Contract Management as a basis for developing their own FMs. These sample
FMs generate goods movements and create the application document, which contains the LDC ID. Customers
can develop all other logistical documents using their own specific FMs which mirror the sample FMs for
import and export fields. Existing logistical documents can be updated within the service stack, using custom
RICEFW development.

 Note

The function modules for OF execution begin with the namespace /ACCGO/OEP*.

More Information

● Orchestration Framework [page 156]

8.2.2 Orchestration Framework Automation

Use

In certain scenarios, you may want to cancel the documents automatically generated by OF during Load Data
Capture process. Orchestration Framework Automation helps you to automatically cancel such documents.

This automation considerably reduces the need for manual intervention in reversing the application document,
thereby reducing the possibility of errors and increasing the Load Data Capture process agility.

Orchestration Framework Automation offers three operations:

● Document Correction
● Document Reversal
● Stock in Transit

Prerequisites

● The Orchestration determination and execution processes have been executed and an OF ticket has been
generated successfully.
● For Stock in Transit, you have maintained the movement types in Customizing for Logistics - General
Global Trade Management Agricultural Contract Management Contract Application Commingled
Stock Maintain Movement Types .

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Process

Document Reversal

1. You select the required LDC Object.

2. The system validates the following parameters and Reversal is not allowed:
1. If no LDC ticket exists
2. If the LDC is already with status OF Reversal Successful or OF Reversal Failed
3. System checks if application document can be canceled with the following conditions and Reversal is
not allowed:
○ If the application document is a Return Application Document (RPD or RSD)
○ If the application document type is different from AAD and CAD and if the transition of status
to cancelled is not allowed.
○ If application document type is a MAD and if settlement has the status Fully Storage Settled.
○ If the application document type is CAD or AAD, Reversal is not allowed:
○ If there is any ticket with an error state for that application document.
○ If the application document status is different from Settlement not relevant and Ready for
Settlement.
○ If a settlement with status Intermidiate Storage Settled or Fully Storage Settled already exists.
○ If all the application document quantity is not in Unassigned or Storage state.
3. After the validation checks, the OF automation process reverses the document to its previous version.
4. The system creates a new OF ticket and you can view multiple tickets in the Recovery Report. One ticket
shows the OF forward process and the second ticket shows the Reversal process. The new ticket also
shows the purpose of the change in the ticket as 5 which stands for Reversal.

Document Correction

1. You select the required LDC Object.

2. The system validates the following parameters and Correction is not allowed:
1. If there is no OF ticket
2. If the correction ticket is in an error state.
3. If the application document instructions is 31 - Sale out
4. System checks if application document can be cancelled, and Correction is not allowed:
1. If application document is a return application document (RPD or RSD)
○ If application document type is different from AAD and CAD and if transition of status is to
cancelled is not allowed.
○ If application document type is a MAD and if settlement has the status Fully Storage Settled.
○ If application document type is CAD or AAD and if there is a ticket with an error state for that
application document.
○ If the application document status is different from Settlement not relevant and Ready for
Settlement.
○ If a settlement with status Intermidiate Storage Settled or Fully Storage Settled already exists.
○ If all the application document quantity is not in Unassigned or Storage state.
3. Use the OF process to unlock the documents for corrections.

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  Note

In some scenarios like the 3rd Party Purchase, you need to first reverse the Application Document and
then trigger Correction. This step is required only if the document has been applied and not otherwise.

4. Once the required values are modified and the object is released, the OF Automation process reverses the
document and creates a new set of documents.
5. The process also creates a new OF ticket and you can view multiple tickets in the Recovery Report. The new
ticket shows the purpose of the change in the ticket as 2 which stands for Correction.

Stock in Transit

Stock in Transit (SIT) allows the system to adjust by adding or removing quantities from Stock In Transit when
the Load and Unload quantities mismatch.

 Example

For example, in a 3rd Party Purchase with Title Transfer Origin (TTO) contract, you create a Load Data
Capture with 25 tonnes in a Load event and release the event. The Orchestration Framework creates a 107+
movement in SIT with 25 tonnes. You then proceed to create the Unload event with 27 tonnes. The
Orchestration Framework again tries to create a 109 movement, by moving 27 tonnes from SIT to
unrestricted stock. However, this movement fails because the SIT lacks 2 tonnes which are not in transit.
Typically, you are expected to manually add the 2 tonnes to the SIT and re-execute OF to execute it
successfully. But with SIT, this process is automated thereby reducing the need for manual intervention.

SIT adjustments are applicable for the following scenarios:

● 3rd party purchase TTO

● Intercompany (TTD / TTO)
● Intracompany (TTD / TTO)

Activities

1. In the SAP Easy Access menu, choose Agricultural Contract Management Load Data Capture
Maintain LDC . Alternatively, you can enter transaction /ACCGO/LDC_WC to call the Load Data Capture
Workcenter. Choose Change LDC Object.

2. Search for the LDC Object you want to reverse and choose .
3. In the next screen select the required LDC, select Reverse to reverse the changes or Correction to reverse
the changes and create a new set of OF documents.

8.2.3 Recovery Report

Use

Once the Orchestration Framework [page 156] has validated the information captured during Load Data
Capture, it determines the applicable scenario and calls the stack of services configured for that scenario to
create logistical documents, as well as the application document that is used for settling payment with the
vendor or customer. If the document postings fail, the Recovery Report retriggers the process. You can call the
Recovery Report from the LDC [page 146]screen by choosing the Recovery Report icon provided at event item
header level.

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Activities

In the SAP Easy Access menu, choose SAP Agricultural Contract Management Load Data Capture
Orchestration Framework Recovery Report , and enter search ticket details as required.

8.3 Back-to-Back

Use

Back-to-Back is a trading scenario where a company sells a quantity of a commodity that it does not yet own or
hold in inventory. This quantity may be at a vendor's site or may already be in transit to the company. To
manage the movement and document chain when a quantity is sold to a counterparty without physically being
received by the company, data must be captured about the delivered quantity, at its destination as well as
potentially at its source. In addition, documents that record the flow of goods and support the financial
settlement must be generated.

Back-to-Back links the purchase and sales documents (the contract or order) through the standard SAP
transaction Nomination [page 163] ( O4NM) It allows users to do the following:

● Track inventory that is in transit for the Back-to-Back scenario in question

● Link the sales and purchase processes in one transaction
● Plan shipments according to the required customer and vendor terms
● Explore different optionalities for purchase and sale contracts
● Defer revenue recognition of a sale until the cost for the related purchase is recognized
● Relate the weights, grades, and characteristics for a Back-to-Back quantity to all elements of the purchase
and sale process
● Mirror logistic documents from one organizational entity to another, depending on the scenario in question
● Reverse documents relevant to Back-to-Back (up to a certain point)
● Manage inventory based on the differences in contract terms for governing weights and governing quality
( DPQS [page 14]) throughout the life cycle of the Back-to-Back process

More Information

● Load Data Capture: Integration with Nomination and TSW [page 154]
● Nomination Maintenance [page 163]
● Performing Pegging [page 164]
● Contract Optionalities [page 40]

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8.3.1 Nomination Maintenance

Use

A nomination is a scheduling document that is used to schedule bulk shipments of agricultural commodity
products. It provides detailed shipment information and serves as a communication link between the carrier,
customer, and all other parties that are connected in a transport. Each nomination has one or more line items
per material. You create a nomination by calling the nomination maintenance transaction, O4NM. In the
maintenance screen, you create a nomination by using any of the following combinations of criteria:

● Two trading contracts (either a sales, purchase, or inter/intracompany contract)

● Two orders (either a sales, purchase, or stock transport order [STO])
● A purchase contract and an STO
● A sales contract and an STO
● An inter/intracompany contract and a purchase order, sales order, or STO

The nomination cross-references the information in the criteria combinations above and contains references to
contract optionalities such as load location, discharge location, payment terms, mode of transport, load rate,
and discharge rate. You can define or change optionalities at the nomination level. Once you have confirmed a
nomination, you refer the nomination in question for further document postings in the Load Data Capture
[page 146] (LDC) screen.

Integration

● If a nomination is relevant for Back-to-Back [page 162], you can indicate this in the nomination screen by
selecting the Back-to-Back pegging type.
● In certain scenarios, load data is captured using the nomination as a reference document.

Prerequisites

In Customizing, you have configured your settings under Logistics Execution TSW General Settings
Nomination .

Activities

You can carry out the following maintenance tasks for the nomination in transaction 04NM:

● Create a nomination
● Confirm a nomination
● Display or change a nomination
● Cancel a nomination

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More Information

● Load Data Capture: Integration with Nomination and TSW [page 154]
● Performing Pegging [page 164]
● Contract Optionalities [page 40]

8.3.1.1 Performing Pegging

Context

Pegging is used to plan and schedule bulk shipments based on supply and demand information. The term
'pegging' refers to the matching of demand items to supply for the purpose of scheduling of bulk shipments,
such as marine voyages or pipeline batches. You plan and schedule bulk shipments, by assigning the pegged
items to the distribution schedule. During pegging, the system uses the supply and demand items that are
created to change or create quantities. Pegging is performed from the nomination item list, using a unique
pegging type which binds the selected line items together with a unique, system-generated pegging ID.
Different pegging types and IDs can be generated in a single nomination.

Procedure

1. In the nomination maintenance [page 163] screen, select the nomination line item.
2. Click the Pegging icon that is provided at the header level. A drop-down list of pegging types appears.
Select the appropriate pegging type. This activates the creation of deliveries from confirmation of the
nomination.
3. If the pegging is successful, a success message appears. To confirm this, you can select the Show Pegged
Items icon at header level. This displays a new view with the pegged items.

Next Steps

Back-to-Back [page 162]

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8.4 SIT Cockpit

Use

The SIT (Stock in Transit) Cockpit lets you view details of all the stock which is in transit or due for delivery. You
can use this function for a third party scenario, and also for an intercompany and intracompany scenario.

Features

The SIT Cockpit provides detailed information about the transit stock in the following views:

● Inbound View
This view provides details of the stock that is on the way to the incoming plant. The ownership of this stock
is with you, the receiving plant.
● Outbound View
This view provides details of the stock for which the outbound delivery has been made and is on the way to
the target plant. The ownership of this stock is with you, the supplying plant.
● Anticipated View
This view provides details of the stock that the incoming plant is expecting, which is an incoming stock. The
ownership of this stock is not with you, the receiving plant.

Activities

1. On the SAP Easy Access screen, choose Agricultural Contract Management Load Data Capture SIT
Cockpit .
2. Choose SIT Cockpit.
3. Enter the required details to view the document.
The SIT cockpit screen appears.

 Note

If you want to view an intercompany or intracompany document, select the Inter/Intracompany

checkbox.

4. In the Inbound View tab page, you can view all purchase related documents and their relevant document
flow.
5. In the Outbound View tab page, choose the application document.
6. Choose Proof Of Delivery pushbutton for an intercompany or intracompany scenario to transfer stock.
7. In the Anticipated View tab page, you can view all the documents for which delivery is anticipated.

 Note

● For an intercompany or intracompany TTI (Title Transfer In Transit) sales scenario, the stock is
transferred from the outbound SIT of the seller to the inbound SIT of the receiver.

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 ● You can filter the data in the views based on a number of combinations or selection parameters.

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9 Contract Application

Use

Contract application is the process of linking an application document line item to a pricing trading contract
(TC). The system creates an application document after the generation of a goods receipt or goods issue
(GR/GI) document.

The contract application process links the application document to the pricing TC. The linking occurs
technically through the logistical TC, which is created upon the save of the purchase order (PO) or sales order
(SO).

Relationship Between the Pricing TC and an Application Document

In a planned purchase scenario, the PO is called-off against a pricing TC. At this point, a link is established
between the logistical TC item and the pricing TC commodity item. The system creates an application
document and establishes a link between that application document and the pricing TC commodity item.

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In both planned and unplanned scenarios, the system validates a load against contract terms. In an unplanned
scenario, you can choose between the following options:

● Check if you can apply it to existing contracts, if any, and determine whether the load is to be applied
automatically or manually in the manual application workcenter
● Create a spot contract for the load
● Place the load in storage and purchase it at a later time

Features

Contract application occurs automatically in the system, however, the contract application component
contains a manual application workcenter, which enables you to do the following tasks:

● Display an application document (including application documents for a commingled load)

● Set a price for a spot contract
● Set a final delivery indicator for a load
● View application returns
● Maintain pricing aspects
● Assign a warehouse receipt

You can also use the manual application workcenter to create, display, and maintain an application group. By
grouping application documents together in application groups, you can facilitate manual applications.

Check the approval status of the Trading Contract as only an approved contract can be used during the
Contract application process. If you apply a non-approved contract in the application workcenter manually,
then an error message is displayed. For more information on Contract Approval, refer to Approving a
Commodity Contract [page 46].

9.1 Application Document

Definition

An application document is an intermediate SAP document that is delivered with SAP Agricultural Contract
Management and used to facilitate contract application and settlement. The application document has a one-
to-one relationship with a goods receipt (GR) document or goods issue (GI) document and is created at the
time of posting.

Use

The primary use of the application document is to enable processes such as the application of discount
premium quality schedules, evaluation of tolerances, evaluation of optionalities, and so on.

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The application document displays the vendor or customer, the material, in addition to the quantity and quality
details. Other application details (such as quantity adjustments) are also displayed.

The system creates an application document when you release a Load Data Capture (LDC) event. The creation
of the goods movement document can be automated through the Orchestration Framework (OF) or can be
performed manually. Pricing is automatically executed for the application document for Mark-to-Market
reporting.

Structure

The application document user interface (UI) is composed of three screen areas titled Header, Item Overview,
and Item Details.

The Header screen area contains the application document number and type.

The Item Overview screen area contains the following tab pages:

● Header - details on the associated logistical documents for the application document
● Items - the master items and sub items that correspond to each GR/GI item
● Admin Data - details on the document's creation and subsequent changes

The Item Details screen area contains the following tab pages that provide further information for each item on
the application document:

● Analysis/Weights - these tab pages display the analysis and weights from the repository.
● LDC - displays Load Data Capture information
● Optionalities - displays details on any optionalities contained in the corresponding contract
● Quantities/Quantity history - these tab pages detail how much was delivered, applied, adjusted and the
original item quantity for a specific item, along with storage program details where relevant.
● Nomination - information on nomination in the case of a back-to-back scenario
● Inventory Balance Posting - displays all the goods movement messages sent from this system
● Warehousing - displays details relating to warehousing of the goods, including the receipt number

The following are the Application Document Types:

Application Document Type Description

Commingled Application Document (CAD) Represents 3rd party goods stored at the Company facility

Load Out Application Document (LAD) Created when a company loads out 3rd Party owned goods
out of a Company owned facility

Accrual Application Document (AAD) Represents a Company owned goods stored at a 3rd Party
Facility

Manual Application Document (MAD) Represents a Company owned goods sold from a 3rd Party
Plant

Purchase Application Document (PAD) Represents a company purchased goods linked to a pur­
chasing contract

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Application Document Type Description

Sales Application Document (SAD) Represents a company sales goods linked to a sales contract

For more information about working with these application documents, refer to topics Load Out Match [page
206] and Spot Contracts [page 179].

Related Information

Mark to Market Reporting [page 86]

9.1.1 Displaying Application Documents

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Maintain Application Document .
2. Click the Display node.
3. Enter an application document number or search for an application document number. You can search
based on a purchase document, sales document, or delivery number, and so on.

4. Choose .
5. In the Item Overview screen area, choose the Items tab page. You can view the flow of documents that lead
to this application document by choosing Docflow.
6. Select the relevant item.
7. In the Item Details screen area, you can view further details on the following tab pages:

Tab Page(s) Details Displayed

Analysis/Weights Analysis and weights from repository

LDC Load Data Capture information

Optionalities Details on any optionalities contained in the corresponding contract

Quantities/Quantity history How much was delivered, applied, adjusted, and the original item quantity for a
specific item, along with storage program details where relevant

Nomination Information on nomination in the case of a back-to-back scenario

Inventory Balance Posting All the goods movement messages sent from this system

Warehousing Details relating to warehousing of the goods, including the receipt number

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9.1.2 Alternative Application Processing Option

Use

The alternative application processing option (AAPO) is the feature which allows the specification of
application instructions to be applied when there is extra quantity in the Load Data Capture (LDC).

The AAPO takes place when a larger quantity than the one defined in the trading contract (TC) is specified in an
LDC generation. In such a case, a partial application takes place during the contract application and the load
will be split into two application document items, one with the quantity defined in the TC and the other one with
the extra quantity which will have the application instruction defined in the AAPO rule

The AAPO feature supports the partial application of a purchase application document (PAD) and a
commingled application document (CAD). However, there are certain Customizing dependencies as well as
restrictions apply.

Prerequisites

The following business rules have been configured with relevant application instructions for AAPO in BRFplus:

● AP09 (Fill and Roll)

● AP10 (Partial Application Rule)
● AP18 (AAPO)
● AP14 (Default Storage Settlement)
Note that this rule is only relevant for commingled scenarios.

 Caution

● To enable the AAPO feature for CAD scenario, the CAD Route switch must be activated in Customizing
for Logistics - General under Global Trade Management Agricultural Contract Management Basic
Settings Activate Feature Switches .
● The title transfer at origin (TTO) and nominations scenarios are not supported by the AAPO feature.
● It is not possible to use the application instruction 07 (Accumulate to Own) for PAD. If the configuration
is done in such a way in BRFplus, the system will automatically apply the application instruction 10
(Unassigned).

Process

1. A commodity is received with a TC. This is an ordinary SAD scenario.

2. During the LDC generation, it is found that the actual quantity is larger than the one defined in the TC.
3. During the contract application, the system triggers the AAPO feature.
4. Depending on the application instruction configured in BRFplus, the partial application takes place by
creating a new application document item.

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The following table summarizes the similarities and differences between the CAD and PAD scenarios:

CAD PAD

CAD-Route Switch in Customizing Activated Deactivated

Status of 1st Line Item after Contract Finally Applied Finally Applied
Application

Status of 2nd Line Item after Con­ Storage Awaiting Spot/AO

tract Application
Unassigned Ready to Apply

Storage Relevancy of Commodity in Relevant Not Relevant

Material Master Data
The system will find a valid storage
agreement based on the configuration
in BRFplus.

More Information

Load Data Capture [page 145]

Contract Application [page 167]

Commingled Loads [page 188]

Spot Contracts [page 179]

9.2 Application Rules

Use

You can create the business rules by which the system executes contract application in any given instance
using the Business Rules Framework Plus (BRFplus) Workbench.

Features

The business rules relevant to the contract application component are detailed in the following table:

Rule Description

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Application Mode You use this rule to determine whether application is to be
automatic or manual. If you set the application mode as
manual for a particular plant and commodity then all the ap­
plication documents created in that particular plant for that
commodity will be always sent to the manual application
workcenter for manual application. This rule is only applica­
ble in an unplanned scenario.

Auto-Application Type In this business rule, you can determine for a given material
and plant combination which automatic application type the
system employs - whether the application document is ap­
plied to an existing contract (using application rules), a spot
contract, an accumulate to own contract, put in storage, or
left unapplied.

Application Rules/Call-Off Sequencing You can maintain application rules at plant level to select
contracts and sort them. You can base the sorting of the se­
lected contracts on the following criteria:

● Pricing type of the contract - no price, no futures, fully

priced, and so on.
● Price status
● Creation date (oldest to newest)
● Delivery period selection (oldest open to the newest
open - including future given tolerance)
● Settlement status, for example, with advance or pre-
payment

Preliminary Overfill Tolerance Using this rule, you can set a preliminary overfill tolerance
that works in conjunction with the contract overfill tolerance
(an additional percentage). You can set the provisional appli­
cation to proceed with a warning, without a warning, or to
stop with an error message based on the values you main­
tain in the rule. For example, if the open quantity is 100 MT,
the contract tolerance is 10%, and the preliminary overfill
tolerance business rule range is 5% to 15%, then the follow­
ing results:

● A provisional weight of up to 115 will allow contract ap­

plication to proceed without a warning message.
● A provisional weight from 116 through to 125 will allow
application to the contract to proceed with a warning
message.

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Preliminary Underfill Tolerance You use this rule to issue a warning or error message during
evaluation of the underfill tolerance maintained in the con­
tracts. You can set the preliminary underfill tolerance to a
percentage figure that operates in conjunction with the con­
tract underfill tolerance. Furthermore, you can use the rule
to determine whether the system issues a warning or error
message should the quantity fall into the underfill tolerance
range maintained in the business rule. For example, if the
open quantity is 100 MT, the contract underfill tolerance is
10%, and the preliminary underfill tolerance business rule is
5 %, then the following results:

● A provisional or final weight from 85 to 89 will allow ap­

plication with a warning message.
● A provisional or final weight from 90 to 99 will allow ap­
plication to the contract with an information message.

Early Delivery Tolerance You maintain this rule at the plant/commodity level to relax
the delivery period restriction. You must use the number of
days that you maintain in the rule in conjunction with the de­
livery period maintained for the commodity item in the con­
tract (delivery to date minus the number of days). For exam­
ple, if 7 days is maintained, and the delivery start date in the
contract for the commodity item is 2010-12-01, then a load
arriving in the last 7 days of November also can be applied.

Late Delivery Tolerance You maintain this rule at a plant/commodity level to relax the
delivery period restriction. The number of days you maintain
in the rule has to be used in conjunction with the delivery pe­
riod maintained for the commodity item in the contract (de­
livery to date plus the number of days). For example, if you
set the rule to 7 days, and the delivery end date for the com­
modity item in the contract is 2010-10-31, then a load arriv­
ing in the first 7 days of November also can be applied.

Call-Off Mode This rule determines the call-off mode - automatic, pro­
posed, or manual.

Firming This is a selection rule (between firmed and unfirmed) that

determines the firming of a call-off.

Call-Off Tolerance This rule is a yes or no decision rule. It determines whether

tolerance maintained in the contract is considered during
call-off process.

Call-Off Preliminary Over-Apply Tolerance The rule is analogous to the preliminary overfill tolerance
rule, in which you maintain percentage values, but this rule
comes into effect during the call-off process.

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Automatic Fill and Roll This business rule comes into effect during the application
process to determine firstly whether a fill and roll to the next
contract should occur or not, and secondly whether a fill and
roll to another commodity item within the same contract
should occur or not. .

Automatic Approval and Transfer to FI (Settlement) This is a yes or no decision rule that determines automatic
approval and transfer to FI during the settlement process.

9.3 Manual Application Workcenter

Use

The manual application workcenter is a central cockpit for all functionality relating to the application of loads to
contracts.

Features

You can use the manual application workcenter to perform the following tasks:

● Display [page 170] the contract application details

● Set the ready to price indicator [page 185] for accumulate to own contracts
● Manually assign pricing lots [page 64]
● View return application documents
● Set a final delivery indicator [page 175]
● Maintain and display [page 178] application groups
● Split [page 201] vendor ownership
● Collate [page 176] the vendor split

9.3.1 Setting Final Delivery Indicator

Context

You select the final delivery indicator to signify that no more new application documents can be applied against
that particular trading contract (TC) commodity item.

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You can set the final delivery indicator during the creation of application document, however you can only
trigger an underfill by setting the final delivery indicator for the item in the manual application workcenter.

The system sends an underfill message to a third-party system depending on tolerance settings.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
2. Click the Maintain Final Delivery Flag node.

3. Enter the relevant contract details and choose .

4. Select the relevant item and choose Set Final Delivery Indicator.

9.3.2 Collating Vendor Split

Context

You can reverse vendor splits created in the UIS or MWC and collate split lines back to their original state.

You can select an application item that was split (by either vendor or contract) and collate all split items of the
same parent item back into a new application item. The new application item will have the same properties as
the parent item before the split.

To collate vendor splits in the Manual Application Workcenter, all items must have the following statuses:

● Purchase Application Documents

○ Ready to apply
○ Reversed
○ No call-off exists
● Commingled Application Documents
○ Unassigned
○ Storage
○ Reversed with zero quantity
○ Awaiting spot assignment with zero quantity

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter

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 The Manual Application Workcenter screen is displayed.

2. In the dialog structure, choose Application Workcenter Contract Application

The Contract Application screen appears.

3. Search for the document you want to collate by specifying the Application Document number and choose
.

4. Select the parent item of an application with split items and choose .
5. The Confirmation dialog box is displayed asking if you want to collate the selected item and it's sub items.
Choose Yes.

A new item with the total quantity of the collated items is created.

9.4 Application Group

Definition

An application group is a cluster of application document line items that are grouped by plant, material, or
counterparty. You can create application groups for reporting purposes or for the joint processing of multiple
application document line items.

Use

You create application groups in the manual application workcenter by searching for and selecting the relevant
application documents. Additionally, you can use the manual application workcenter to display and maintain
application groups.

It is possible to calculate a weighted average for the quality factors of each application document item in the
application group. You can manage this calculation through a Business Add-In (BAdI).

Summarizing and averaging of application document values can be:

● Automatically triggered during the creation of an application group

● Automatically triggered during maintenance of the application group (when adding or deleting application
documents)

Structure

Each application group has a unique number, a description, and application group type.

An application group can have the following processing statuses:

● Unapplied

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● Errors
● Provisionally Applied
● Finally Applied
● Re-evaluation Needed
● Reversed

9.4.1 Creating Application Group

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
2. Click the Application Group node.
3. Click the Create Application Group node.
4. Enter an application document number or search for an application document number. You can search
based on a purchase document, sales document, or delivery number, and so on.

5. Choose .
6. Enter the application document numbers, specifying the range from which the application documents are
to be selected and grouped, then choose .

7. Select the line items from the contract application documents and choose .
8. Select an application group type and enter a description for the group.

9. Choose .

9.4.2 Displaying and Maintaining Application Groups

Context

You can display an existing application group and maintain it by changing its description and adding or deleting
application document line items in the manual application workcenter.

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Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
2. Click the Application Group node.
3. Click the Maintain/Display node.

4. To display an application group, enter the number of the application group and choose .

5. To add more application documents to the group, select the application group and choose .

6. To delete application documents from the group, select the application group and choose .

7. To change the description of the application group, select the application group and choose .

8. Enter a new description for the application group and choose .

9.5 Spot Contracts

Use

You use this function to process unscheduled purchase of commodities from vendors.

There are two types of contract involved:

● Spot contract
A spot contract can be used when a commodity has a potential for multiple deliveries in one day.
● Accumulate to Own (AO) contract
An AO contract is a type of spot contract. Unlike a spot contract, however, an accumulation occurs over a
period of time before sending to pricing by setting the Ready to Price indicator.

 Note

A spot contract is created after the execution of Spot Monitor.

An AO contract is created after receiving the first load from a vendor and the execution of Spot Monitor.
Then the quantities from further loads are accumulated or updated to the created contract during further
execution of Spot Monitor.

You can also use this function to generate Spot Contracts for the Purchase Application Documents (PAD) and
Commingled Application Documents (CAD) based on the factor of storage relevance.

If an LDC material is storage relevant, then you use a CAD spot contract. If not, then you use a PAD spot
contract. To set an item as storage relevant, you can use the standard transaction MM02 or navigate from the
SAP Menu to Logistics > Material Management > Material Master > Material > Change. For more information
about Changing Material Master, refer to the help documentation of SAP ERP 6.0 at http://help.sap.com >
SAP ERP > SAP ERP 6.0 > Application Help.

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Prerequisites

The application rules for spot and AO contracts are enabled in Business Rule Framework plus (BRFplus).

 Note

This is an optional setting and needed only if you want to mark all the loads received in a particular plant for
spot or AO.

Features

● You create a load data capture object for the spot or AO commodity.
For step-by-step procedure, see Creating Load Data Capture Objects [page 181].
● You mark the application document for spot or AO in Manual Application Workcenter.
For step-by-step procedure, see Marking Application Documents in Manual Application Workcenter [page
183]
● When an LDC is released and a CAD process is determined for Spot or Accumulate and Own Contract
Request, the system generates a dual-booking by creating the following documents:
○ Goods receipt in physical Plant/Storage Location
○ Goods issue in obligations Plant/Storage Location
As a result, the status of the Commingled application document changes to Awaiting for Spot status.
● When an LDC is released and a PAD process is determined for Spot or Accumulate and Own Contract
Request, the system automatically generates the following logistics documents:
○ Purchase Order
○ Inbound Delivery
○ Goods Receipt
As a result, the status of the Purchase application document changes to Awaiting for Spot status.
● You generate the spot or AO contract using the Spot Monitor.
For step-by-step procedure, see Generating Contracts in Spot Monitor [page 184]
After executing the Spot Monitor, note the following differences:
○ For a PAD, a link is created between Contract and Logistics documents
○ For a CAD, the set of logistics documents are generated during the application process, therefore
creating:
○ Purchase Order
○ Inbound Delivery
○ Goods Receipt

You can use the following transactions to handle spot or AO commodities:

● Maintain LDC ( /ACCGO/UIS_WC)

Using this transaction, you can create a load data capture (LDC) object for a spot or an AO commodity
received.
In this transaction, you can create an LDC object in which you can define the details for relevant spot or AO
commodity.
The system applies the default discount premium quality schedule (DPQS) for the TSW location.
● Manual Application Workcenter ( /ACCGO/MWC)

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 An application document with unassigned status can be marked for spot or AO manually by using the
commingled node in Manual Application Workcenter.
● Spot Monitor ( /ACCGO/SPOT_MONITOR)
You need to execute the Spot Monitor to send the spot or AO contract request either to the contract
creation or change request in the third party trading system (3PT), or to trigger the contract creation and
update process within the ERP system.

 Note

The system applies both the CAD as well as PAD processes to the newly generated contracts after the
Spot Monitor is executed.

9.5.1 Spot Purchase and Accumulate to Own

Use

You use this process to handle the commodities received as spot or accumulate to own (AO).

Process

The process for spot or AO takes place as follows:

● You create a load data capture object for the spot or AO commodity.
For step-by-step procedure, see Creating Load Data Capture Objects [page 181].
● You mark the application document for spot or AO in Manual Application Workcenter.
For step-by-step procedure, see Marking Application Documents in Manual Application Workcenter [page
183]
● You generate the spot or AO contract using the Spot Monitor.
For step-by-step procedure, see Generating Contracts in Spot Monitor [page 184]
● You send the spot or AO contract for settlement by setting the contract to Ready to Price.
For step-by-step procedure, see Setting Contracts to Ready to Price [page 185]

9.5.1.1 Creating Load Data Capture Objects

Prerequisites

You are authorized to work in the Load Data Capture (LDC).

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Context

You use this procedure to create load data capture (LDC) objects for spot or accumulate to own (AO) in the
Load Data Capture (LDC).

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Load Data Capture
Maintain LDC .

You can also execute the transaction code /ACCGO/UIS_WC.

The Load Data Capture - Maintain screen appears.

2. In the dialog structure, choose Create LDC Object .

The Create Load Data Capture Object screen appears.

3. Enter the values in the following mandatory fields:
○ Application Instructions
Select 05 Regular Spot or 06 Accumulate to Own.
○ LDC Type
Select Incoming or Outgoing.
○ Mode of Transport
Select one from:
○ 01 Road
○ 02 Rail
○ 03 Sea
○ 04 Inland Waterway
○ 05 Air
○ 06 Postal Service
○ 90 TSW - Not Applicable
○ Event
Select Load or Unload.
○ Event Location
Select a TSW location using the search help provided.
○ Material
Select a material, such as corn, wheat and so on, using the search help provided.

4. Choose .

In the next screen, a new row for this LDC object is created. At this stage, the object is created only
temporarily as '$1' is displayed in the LDC ID field.
5. Click the linked text '$1' which jumps to the detailed screen.
6. Enter the required information on the Event Details and Weights Details tabs.

7. Choose .

The system updates the LDC ID field from the temporary number '$1' to a new ID number.

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8. To check the log, choose .

9.5.1.2 Marking Application Documents in Manual

Application Workcenter

Prerequisites

You are authorized to work in the Manual Application Workcenter (MAW).

Context

You use this procedure to mark the application documents for spot or accumulate to own (AO) in the Manual
Application Workcenter (MAW).

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .

You can also execute the transaction code /ACCGO/MWC.

The Manual Application Workcenter screen appears.

2. In the dialog structure, choose Application Workcenter Contract Application .

The Contract Application screen appears.

3. Search the relevant documents for which you want to mark for spot or AO by specifying the Application
Document number.

To make your search more precise, you can also specify other fields, such as:
○ Application Document Type
○ Document Date
○ LDC Object ID
○ LDC Group ID
○ Purchase Order
○ Nomination Key

4. Choose .

Based on the selection criteria specified, the selected documents are displayed under the Contract
Application Documents area at the top half of the screen.

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5. Under the Contract Application Documents area, select one or more line items with Ready To Apply status.

6. Under the button in the ALV grid, choose Accumulate to Own Contract Request or Spot Contract
Request.

The status of the line item changes to Awaiting for Spot / AO.

Results

You have marked the application document to spot or AO.

9.5.1.3 Generating Contracts in Spot Monitor

Prerequisites

The contract creation within the SAP ERP system takes place only when the switch for third party trading
system (3PT) integration is off.

Context

You can use this procedure to generate spot or accumulate to own (AO) contracts as well as to monitor these
contracts using the Spot Monitor.

The functions offered by the Spot Monitor are realized by the report Spot / Accumulate to Own Trade Requests
(program /ACCGO/CAS_SPOT_MONITOR).

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Spot Monitor .

You can also execute the transaction code /ACCGO/SPOT_MONITOR.

The selection screen for the report Spot / Accumulate to Own Trade Requests appears.
2. To search the relevant documents, enter the data in the Header Information block.

The following fields are available:

○ Vendor

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 ○ Plant
○ Material
○ Document Date
○ Mode of Transport
3. Depending on the request you want, choose the options as follows in the Spot Scenario Selection block:
○ For creation of spot contracts:
Mark the Simple Spot radio button and the Contract Create/Change checkbox.
○ For creation of AO contracts:
Mark the Accumulate to Own Create/Edit radio button and the Contract Create/Change checkbox.

4. Choose .

The creation of contracts is triggered in the background and the Display logs screen, in which you can view
the processing details, is displayed.

Results

The result varies based on the integration scenario as follows:

● SAP ERP system only:

Creation or change of spot or AO contracts is processed only in SAP ERP system.
● Third party system is connected to SAP ERP system:
The request for creation or change of spot or AO contracts is sent from the SAP ERP system to the third
party trading system (3PT) via the SAP PI system.

Next Steps

● For more information on the 3PT integration, see Possible Third Party Integration [page 268].
● For more information on the PI Content that is supported as part of SAP Agricultural Contract
Management, see .

9.5.1.4 Setting Contracts to Ready to Price

Use

You use this procedure to set the accumulate to own (AO) contracts to Ready to Price indicator in the Manual
Application Workcenter (MAW).

To make an AO contract available for pricing, the following two steps need to be done:

1. Ready to Price indicator is marked

2. Approval indicator is marked

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Prerequisites

You are authorized to work in the Manual Application Workcenter.

Procedure

Setting Ready to Price Indicator

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
You can also execute the transaction code /ACCGO/MWC.
The Manual Application Workcenter screen appears.
2. In the dialog structure, choose Application Workcenter Set Ready to Price .
The Set Ready to Price screen appears.
3. Search the relevant AO contract by specifying the Trading Contract number.
You can also specify other fields in the Set Price for Spot - Accumulate to Own block.

4. Choose .
Based on the selection criteria specified, the selected contracts are displayed in the list.
5. Select a contract.

 Note

You can only select one contract.

6. Press the button.

The checkbox in the Ready to Price column for the selected contract is marked.

Setting Approval Indicator

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
You can also execute the transaction code /ACCGO/MWC.
The Manual Application Workcenter screen appears.
2. In the dialog structure, choose Application Workcenter Set Ready to Price .
The Set Ready to Price screen appears.
3. Search the relevant AO contract by specifying the Trading Contract number. You can also specify other
fields in the Set Price for Spot - Accumulate to Own block.

4. Choose .
Based on the selection criteria specified, the selected contracts are displayed in the list.
5. Select a contract for which you want to mark the Approval checkbox.

6. Press the button.

The checkbox in the Approval column for the selected contract is marked and the traffic light in the Sts
Lights column changes from to .

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9.5.2 In Store Sales and Purchase

In a scenario where you want to sell the goods and the customer wants to store the goods, you can use the
Application Instruction 30 In Store Sales. This functionality combines the steps to create LDC for a Sales
scenario followed by Spot Purchase and Accumulate to Own scenario. As a result, it triggers the creation of
documents related to both the sale and storage of the goods.

If your implementation scenario uses a third party trading system, then you can use In Store Purchase. Here,
you can select the application instruction 03 Existing Contract or 04 Open Contract. However, ensure you select
the third party plant. The system then creates two application documents, Accrual Application Document and
Purchase Application Document. In a normal purchase scenario, only the Purchase Application Document is
created.

9.5.3 PAD and CAD Spot Reversal

Use

You can also reverse a Spot Contract process for both CAD and PAD application documents.

Process

PAD Spot Reversal

● You trigger reversal of a PAD document that was applied to a Spot Contract.
● The document changes its status to Ready to Apply. This status allows you to choose another contract or
trigger an LDC Reversal. For information about LDC Reversal, see Orchestration Framework Automation
[page 159]

CAD Spot Reversal

● You trigger reversal of a CAD document that was applied to a Spot Contract.
● The document changes its status to Ready to Apply. This status allows you to choose another contract,
but will not allow an LDC reversal. The reason for that is the logistical documents that were generated
during the contract application process of CADs.
● To trigger an LDC reversal for a CAD Spot Contract, change the status of the CAD document from Ready to
apply to Unassigned.
● You can now trigger the reversal of all logistical documents created during application, and run the LDC
reversal process.

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9.6 Commingled Loads

Use

You use this function to handle commingled loads in SAP Agricultural Contract Management.

When the firm accepts a commodity from a counterparty (owner) for storage at the firm's location, but does
not purchase it, the firm must keep a record of such commodity.

This kind of obligated quantity is called 'commingled load', as it is stored in the same location as the firm's own
inventory and its quantity as well as grade and quality characteristics may become indistinguishable from
other inventory.

The firm must ensure that a commingled load that is stored on its site is available for retrieval by its owner at
the same or better quality as when it was delivered to the firm's site.

There may be a fee associated with the storage of the stock and the quantity may or may not be purchased by
the firm from the owner.

Using this function, you can keep track of movements associated with commingled loads and manage their
contracts.

Features

Using this function, you can do the following:

● Capture the load data based on the warehouse number and type using the storage programs
● Search commingled application documents based on the warehouse number and type
● Change the status of a commingled obligation load from one status to another, for example, from Applied
to Unapplied
● Record the dates associated with status changes to a commingled obligation load
● Assign a commingled quantity to a storage program
● Change ownership of a commingled obligation load
● Exclude a commingled quantity from the firm's inventory quantity
● Calculate commingled quantities using the storage programs
● Manually calculate a storage fee for a commingled quantity using the storage programs
● Send a commingled quantity information to a third party trading system (3PT)
● Control whether the negative storage location is to be considered for Exposure Management.

 Note

As a part of ACM-CM integration which is realized as of SAP Agricultural Contract Management 2.0, an
integration of risk exposure function with the Commingled Loads (ACM Core) scenario has been
enabled.

You can define the exposure relevancy per negative storage location in Customizing for Logistics -
General Global Trade Management Agricultural Contract Management Contract Application
Commingled Stock Maintain Storage Location for Negative Posting .

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 For more information, see Integration with SAP Commodity Management [page 56] and Exposure
Management [page 64].

More Information

For more information, see Possible Third Party Integration [page 268].

9.6.1 Commingled Load Entry and Management

Use

The commingled load information is captured in the same manner as other load data. This includes the capture
of gross quantity, quality characteristics, location, mode of transport and so on.

In addition, the load must be identified as commingled stock. Once it is identified as such, a storage program
can be assigned during the data capture.

Subsequently, the load quantity is designated with a warehouse for storage, so that a receipt can be issued to
the owner.

Process

Manual Application Workcenter

You use the Manual Application Workcenter (MAW) to perform the commingled stock entry and management
process as follows:

● Search the application documents for commingled load

For more information, see Displaying Application Documents [page 191].
● Assign the relevant commingled application documents to a contract
For more information, see Assignment of Application Documents to Contract [page 192].
● Reverse the assignment of commingled application documents to the contract
For more information, see Reversing Assignment of Application Document to Contract [page 194].
● Assign a storage program to the commingled application documents
For more information, see Assignment of Storage Program to Application Documents [page 195].
● Change the assignment of storage program
For more information, see Changing Storage Program Assignment. [page 196]
● Create, change and cancel an warehouse receipt that is issued to the owner of the commingled load
For more information, see Processing Warehouse Receipts [page 197].
● Remove the application document from storage program and set back to the unassigned status
For more information, see Removing Application Documents from Storage Program [page 200].
● Split the ownership of the load to multiple vendors
For more information, see Splitting Vendor Ownership [page 201].

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● Create the load out application documents when the load is returned to its owner
For more information, see Creating Load Out Application Documents [page 207].

Storage Program

Together with additional business rules, a storage program definition is used to determine its relation to a
combination of plant and material during the load data capture.

Although calculation and settlement of storage fees are currently not supported in SAP Agricultural Contract
Management, this storage program configuration can be used to populate the invoice information for storage of
commingled loads for periodic billing to the vendor.

For more information, see Creating Storage Program Types [page 210].

9.6.1.1 Processing Commingled Stocks in Manual

Application Workcenter

Use

Under this section, a set of step-by-step procedures is provided.

You use these procedures to process commingled stocks in the Manual Application Workcenter (MAW).

Prerequisites

● You are authorized to work in the Manual Application Workcenter.

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.

Procedure

Under this section, the following step-by-step procedures are provided:

● Displaying Application Documents [page 191]

● Assignment of Application Documents to Contract [page 192]
● Reversing Assignment of Application Document to Contract [page 194]
● Assignment of Storage Program to Application Documents [page 195]

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● Changing Storage Program Assignment [page 196]
● Processing Warehouse Receipts [page 197]
● Removing Application Documents from Storage Program [page 200]
● Splitting Vendor Ownership [page 201]
● Creating Load Out Application Documents [page 207]

9.6.1.1.1 Displaying Application Documents

Prerequisites

● You are authorized to work in the Manual Application Workcenter.

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.

Context

You can use this procedure to search and display the application documents for commingled loads in the
Manual Application Workcenter (MAW).

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .

You can also execute the transaction code /ACCGO/MWC.

The Manual Application Workcenter screen appears.

2. In the dialog structure, choose Application Workcenter Commingled .

The Commingled screen appears.

3. Search the relevant documents for commingled stock by specifying the Application Document number. You
can also specify other fields, such as the following:

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 ○ Application Document Type
○ Document Date
○ LDC Object ID
○ LDC Group ID
○ Purchase Order
○ Nomination Key
○ Application Instruction
○ Original Application Instruction

4. Choose .

 Note

To view all historical transactions for the selected application document on the detailed screen, select
the Show History checkbox. If it is not selected, only the actionable line items are displayed.

 Note

To convert application documents with different units of measure to a common unit of measure,
choose a default unit of measure. You can switch between trade and other relevant material-related
units of measure for contract application data.

Results

Based on the selection criteria specified, the selected commingled application documents are displayed under
the Contract Application Documents area at the top half of the screen.

9.6.1.1.2 Assignment of Application Documents to

Contract

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .

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● You have maintained the required master data settings in the Business Rule Framework plus.
● You are in the Manual Application Workcenter (MAW) and commingled application documents have been
searched and available in MAW.
For more information, see Displaying Application Documents [page 191].

Context

You use this procedure to assign the application documents for commingled loads to contract.

Procedure

1. Under the Contract Application Documents area in MAW, select one or more line items to assign the
contract.

 Note

The selected line item must have an open quantity available with title transfer at destination.

2. Change the value in the Picked Quantity field, if necessary.

3. Under the button in the ALV grid, choose Manual Selection of Contract or Propose Contracts.
4. If you choose Propose Contracts, enter the value in the Purchasing Organization and Purchasing Group
fields in the popup displayed.

If you choose Manual Selection of Contract, enter the value in the Trading Contract field.

5. Choose .

6. For Propose Contracts, a list of contracts is displayed. Select a contract and choose .

For Manual Selection of Contract, the contract you specified is displayed. Select the contract and choose
.

Results

A new line item is created with the status Finally Applied for both full and partial quantity applications.

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9.6.1.1.3 Reversing Assignment of Application Document
to Contract

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.
● You are in the Manual Application Workcenter (MAW) and an assignment of a commingled application
document to a contract for which you want to reverse is available in MAW.
For more information, see Displaying Application Documents [page 191] and Assignment of Application
Documents to Contract [page 192].

Context

You use this procedure to reverse the assignment of a commingled application document to a contract.

Procedure

1. Under the Contract Application Documents area in MAW, select a line item to unassign the contract.

 Note

Partial quantities are not allowed as it is impossible to reverse partial quantities.

2. Double click the line item. The details of line item are displayed under the Contract Application Data area.

3. In the ALV grid under the Contract Application Data area, press the button.

Results

The assignment of the application document to the contract is now reversed.

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9.6.1.1.4 Assignment of Storage Program to Application
Documents

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.
● You are in the Manual Application Workcenter (MAW) and a commingled application document with
Unassigned status is available in MAW.
For more information, see the following:
○ Displaying Application Document [page 191]
○ Assignment of Application Document to Contract [page 192]
○ Reversing Assignment of Application Document to Contract [page 194]

Context

You use this procedure to assign a storage program to the commingled application documents.

Procedure

1. Under the Contract Application Documents area in MAW, select one or more line items which have the
status Unassigned.

2. Under the button in the ALV grid, choose Assign Program.

The Assign Program popup appears.

3. In the popup displayed, specify the following Storage Details:
○ Program Type (mandatory)
Choose a program type from the dropdown list.
○ Storage Start Date (mandatory)
The system defaults the current date which you can override. Note that the storage start date specified
must fall between the posting date and the current system date.

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4. Choose .

Results

A new line item is created with the following details:

● The Storage status is assigned

● A storage program is assigned
● The delivery quantity equals to the picked quantity
● The delivery quantity (equals to the picked quantity) is reduced from the selected line item

Next Steps

If you want to change the assignment of storage program, see Changing Storage Program Assignment [page
196].

9.6.1.1.5 Changing Storage Program Assignment

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.
● You are in the Manual Application Workcenter (MAW) and commingled application documents with open
quantity are available in MAW.
For more information on how to search the documents in MAW, see Displaying Application Documents
[page 191].

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Context

You use this procedure to change the storage program assignment to a commingled application document.

Procedure

1. Under the Contract Application Documents area in MAW, select one or more line items which have the open
quantity available.

The system defaults the entire quantity in the Picked Quantity field. The value in this field can be
overridden, if desired.

2. Under the button in the ALV grid, choose Assign Program.

The Assign Program popup appears.

3. In the popup displayed, specify the following Storage Details:
○ Program Type (mandatory)
Choose another program type from the dropdown list.
○ Storage Start Date (mandatory)
The system defaults the current date which you can override. Note that the storage start date specified
must fall between the posting date and the current system date.

4. Choose .

Results

A new line item is created with the following details:

● The specified new storage program is assigned

● The picked quantity is available

9.6.1.1.6 Processing Warehouse Receipts

Use

A warehouse receipt (WRH) is a document that provides proof of ownership of commodities that are stored in a
warehouse, vault, or depository for safekeeping. A farmer can request a warehouse receipt to be issued for
commingled stocks. Once can generate these receipts for one or more application documents.

Note that you can generate a warehouse receipt only for an assigned application document. You can also verify
if you can generate a warehouse receipt for an application document by checking the status of the document.
The status of such documents will be green, which denotes that the document is in Initial Warehouse Receipt
status.

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There are two types of warehouse receipt as follows:

● Negotiable Warehouse Receipt is a title document that is issued by a licensed warehouse to identify
ownership of a stored commodity. You can endorse and sell this document. However, you cannot change
the quantity of the goods mentioned in the document.
● Non-Negotiable Warehouse Receipt is not a title document and does not provide ownership of the
commodity. This type of receipt allows a change of the quantity.

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the number ranges in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Warehouse Receipts Contract Application
Maintain Range Numbers for Document Types.
● You have maintained the document types in Customizing for Logistics - General Global Trade Management
Agricultural Contract Management Contract Application Warehouse Receipts Maintain Document Types
● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.

Procedure

Creating Warehouse Receipts

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
You can also execute the transaction code /ACCGO/MWC.
The Manual Application Workcenter screen appears.
2. In the dialog structure, choose Application Workcenter Commingled .
The Commingled screen appears.
3. Search the relevant documents for issuing warehouse receipts by specifying the Application Document
number. You can also specify other fields, such as:
○ Application Document Type
○ Material
○ Plant
○ Warehouse Receipt Number

4. Choose .

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  Note

Mark the Show History checkbox, if you want to view all historical transactions for the selected
application document on the detailed screen. If it is not marked, only the actionable line items are
displayed.

Based on the selection criteria specified, the selected documents are displayed under the Contract
Application Documents area at the top half of the screen.
5. Under the Contract Application Documents area, select one or more line items for which you need to issue
warehouse receipts.

6. Press the button.

7. In the Warehouse Receipt popup screen, select the WRH Type, assign a WRH Number, and select an
Obligation Type.

8. Choose .

The successful message appears.

You can see the details of the receipt in the Warehouse Receipt tab under Application Workcenter. This screen
displays the details under the following tabs -- References, Analysis, Weights, Dates, and Admin Data of the
selected receipt or document.

You can also create collective warehouse receipts for multiple application documents; however ensure all the
documents have the same vendor.

Cancelling Warehouse Receipts

1. Under the Contract Application Documents area in MAW, select one line item for which you want to cancel
the warehouse receipt.

2. Choose .
The Cancel Warehouse Receipt popup appears.
3. Choose the Yes button to confirm the cancel action.

Changing Vendor for Warehouse Receipt

1. Under the Contract Application Documents area in MAW, select a line item to which you want to change the
vendor.

 Note

Only Negotiable warehouse receipts are applicable for vendor change.

2. Under the button in the ALV grid, choose Vendor.

The Change Vendor popup appears.
3. In the popup displayed, enter the Vendor using the input help.

4. Choose .
The message popup appears.
5. Press the Yes button to confirm.

As a result, the assigned vendor is now changed.

Changing Quantity of Warehouse Receipt

1. Under the Contract Application Documents area in MAW, select a line item to which you want to change the
quantity.

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  Note

Only Non-negotiable warehouse receipts are applicable for quantity change.

2. Choose the button in the ALV grid.

The Picked Quantity field changes to edit mode and you can change the quantity. Ensure you choose a
quantity which is lesser than the open warehouse quantity.

3. Choose which is beside the Change Warehouse Receipt button.

The successful message appears.

As a result, the quantity is now changed. When a quantity is changed, the system cancels the current receipt
and creates a new receipt with the changed quantity.

 Note

The UOM of the base material should be the same.

You can see the details of the various versions of the receipts created during this whole process in the
Application Document Details screen. The status column shows the various line items with different statuses
according to the process. The following are the statuses shown in this column:

● Green - Initial Warehouse Receipt

● Red - Cancel/close Warehouse Receipt
● Yellow - Warehouse Receipted

You can also cancel the operation by choosing the Refresh button or double-click another line item in the Main
Item list.

9.6.1.1.7 Removing Application Documents from Storage

Program

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.
● You are in the Manual Application Workcenter (MAW) and a commingled application document with open
quantity that is assigned to a storage program is available in MAW.

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 For more information, see the following:
○ Displaying Application Documents [page 191]
○ Returning to Storage Status after Assignment Reversal [page 195]
○ Changing Storage Program Assignment [page 196]

Context

You use this procedure to remove the commingled application documents from the assigned storage program
and set the status back to Unassigned.

Procedure

1. Under the Contract Application Documents area in MAW, select one or more line items which have the open
quantity available.

The system defaults the entire quantity in the Picked Quantity field. The value in this field can be
overridden, if desired.

2. Under the button in the ALV grid, choose Move to Unassigned.

The Unassign Date popup appears.

3. In the popup displayed, specify the Unassign Start Date.

The system defaults the current date which you can override. Note that the unassign start date specified
must fall between the posting date and the current system date.

4. Choose .

Results

A new line item is created with the following details:

● The Unassigned status is assigned

● The open quantity is still available
● The open quantity can be moved to the storage program or purchased

9.6.1.1.8 Splitting Vendor Ownership

Use

Incoming loads can be split manually to multiple vendors in the Manual Application Workcenter (MAW).

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Vendor split allows you to do the following:

● Split 100% of the ownership from one vendor to multiple vendors

● Maintain the percentage of ownership for the original vendor and split it to multiple vendors
● Mass split multiple application documents that have the same vendor, plant, and material. The total
quantity is split and proportionally divided to each document item.

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.

Procedure

Commingled Scenario (CAD)

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .
You can also execute the transaction code /ACCGO/MWC.
The Manual Application Workcenter screen appears.
2. In the dialog structure, choose Application Workcenter Commingled .
The Commingled screen appears.
3. Search the relevant documents for commingled stock by specifying the Application Document number. You
can also specify the following fields:
○ Application Document Type
○ LDC Group ID
○ Vendor
○ Storage Program Type
○ Material
○ Plant

4. Choose .

 Note

To view all historical transactions for the selected application document, select the Show History
checkbox. If this checkbox is not selected, only the actionable line items are displayed.

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5. Under the Contract Application Documents screen area, select a line item to split the ownership.

 Note

○ The selected line item must have an open quantity available with title transfer at destination.
○ The entire quantity is split as partial quantity is not allowed.

6. Under the button in the ALV grid, choose Split to Vendors.

The Split Screen popup appears.

7. Insert one or more rows by choosing .

8. Specify one or more vendors for which you want to split the ownership. Specify whether the split is by
percentage or quantity.

 Example

You want to split the load (700,000LB) for vendor 6000000001 (Minneapolis) to vendor 6000000005
(Kansas City) with 30% and vendor 6000000008 (Atlanta) with 20%.

Vendor Ven Split % Split Qty Unit

6000000001 (Minneapo­ 50,00 350,00 LB

lis)

6000000005 (Kansas 30,00 210,00 LB

City)

6000000008 (Atlanta) 20,00 140,00 LB

9. Choose .

Purchase Scenario (PAD)

1. In the Manual Application Workcenter in the dialog structure, choose Application Workcenter Contract
Application .
The Contract Application screen appears.
2. Search the relevant documents for commingled stock by specifying the Application Document number. You
can also specify the following fields:
○ Application Document Type
○ LDC Group ID
○ Vendor
○ Purchase Order
○ Material
○ Plant

3. Choose .
4. Perform steps 4-9 from the Commingled Scenario (CAD).

Splitting Quantity to Contracts

Using the split function, you can also split a quantity into multiple contracts.

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To do this, replace the steps 6 to 9 in the Commingled Scenario (CAD) with the following procedure:

1. Under the button in the ALV grid, choose Split Quantity into Contracts.

2. In the Trading Contract field, enter more than one contract. Choose .
The specified contracts are displayed in the List of Contracts screen.

3. Select more than one contract and choose .

The Split Screen popup appears.
4. Split the quantity by specifying Split % (percentage) or Split Qty (quantity) across the selected contracts.
Choose .

9.6.1.1.9 Creating Storage Load Out

Prerequisites

● You are authorized to work in the Manual Application Workcenter (MAW).

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
● You have maintained the required master data settings in the Business Rule Framework plus.

Context

You use this procedure to create a request to load out a commingled load from the storage.

Load out is performed when the commodity received as a commingled load (un-owned stock) is returned to its
owner.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .

You can also execute the transaction code /ACCGO/MWC.

The Manual Application Workcenter screen appears.

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2. In the dialog structure, choose Application Workcenter Commingled .

The Commingled screen appears.

3. Search the relevant documents for commingled stock by specifying the Application Document number. You
can also specify other fields, such as:
○ Application Document Type
○ Document Date
○ LDC Object ID
○ LDC Group ID
○ Purchase Order
○ Nomination Key

4. Choose .

 Note

Mark the Show History checkbox, if you want to view all historical transactions for the selected
application document on the detailed screen. If it is not marked, only the actionable line items are
displayed.

Based on the selection criteria specified, the selected documents are displayed under the Contract
Application Documents area at the top half of the screen.
5. Select one or more line items for loaded out. Change the quantity, if necessary,

6. Press the button.

Results

Once the Loaded Out status is set, the application document is no longer an obligation or available for
purchase.

9.6.1.1.10 Handling of Stored Goods

Use

The handling of stored goods is a set of activities you perform to receive goods for storage or to move goods
between different storage agreements.

Process

1. In the Load Data Capture Workcenter, create an unload event representing incoming 3rd party goods for
storage, or goods being stored at a 3rd party location.

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2. When storing goods at a 3rd party location, the system automatically determines if the event location is a
plant configured as a 3rd party storage location, and triggers the creation of the corresponding documents
accordingly.
3. After releasing the load data capture event, the system generates one of the following corresponding
application documents:
○ Commingled Application Document (CAD)
○ Load Out Application Document (LAD)
○ Accrual Application Document (AAD)
○ Match Out Application Document (MAD)

9.6.1.2 Load Out Match

Use

Load Out is a process performed when the commodity received as a commingled load (un-owned stock) is
returned to its owner.

A Load Out may have one of the following scenarios:

Storage Scenario: The commodity is brought to the buyer by a vendor or customer and stored; however, the
buyer may not purchase the load. The commodity will be loaded out at a later date to either the original
(delivering) producer, or to their assignee.

Put-through Scenario: The buyer facilitates the transfer of material from an inbound vessel to an outbound
vessel and charges a fee for the service. An example of this would be unloading (inbound) of multiple
truckloads of grain, to loading (outbound) of the same quantity or quality of grain onto a barge or railcar.

Load Outs may occur from a different plant than where the load is stored.

The Load Out Matching feature helps you to match Load Out application documents (LAD, MAD) with stored
goods application documents (CAD, AAD). In addition, it helps you to washout the obligation stock by
identifying the corresponding unloads for the specific Load Out material and clearing off the quantity from the
obligation stock. The following are the possible scenarios to clear out the residual stock:

● If there is remaining stored goods quantity, you can choose to keep it in storage or scrap it.
● When the load out quantity is greater than the stored quantity, you can choose either to sell out the
residual quantity or to scrap it, in order to match the missing delivered quantity.
● When the stocks are stored at a 3rd party location and the load out quantity is greater, the match will be
scrapped by the 3rd party location in order to match the missing delivered quantity or the option Keep in
Storage is selected. In such a scenario, you can use the Accrual Application Document (AAD) and Match
Application Document (MAD) while creating the LDC Objects.

Prerequisites

● You have implemented the Changes in the Load Out Matching Process before Match BAdI in Customizing
under Agricultural Contract Management Enhancements Using Business Add-Ins Contract
Application Load Out Matching

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Process

You use the Manual Application Workcenter to perform the Load Out Matching process as follows:

● Search the application documents for commingled load

For more information, see Displaying Application Documents [page 191].
Assign a storage program to the commingled application documents
For more information, see Assignment of Application Documents to Contract [page 192].
Create the storage load out using the application instruction Load Out (35) to return part of the stored
goods to the vendor or owner.
For more information, see Creating Load Out Application Documents [page 207].
Find and match the load outs application documents with stored goods application documents using the
Discount Premium Quality Schedule [page 14]. The Value schedule is used to get the Material Schedule to
determine the filtered materials.

Result

The application documents are matched. You can choose to sell out or mark scrap the residual quantity once
the application documents are matched. The other option available to handle residual quantity is the Keep in
Storage which is used in 3rd Party scenarios.

9.6.1.2.1 Creating Load Out Application Documents

Prerequisites

You are authorized to work in the Load Data Capture (LDC).

Context

You use this procedure to create a load data capture object using the Load Out application instruction.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Load Data Capture
Maintain LDC .

You can also execute the transaction code /ACCGO/UIS_WC.

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 The Load Data Capture - Maintain screen appears.

2. In the dialog structure, choose Create LDC Object .

The Create Load Data Capture Object screen appears.

3. Enter the values in the following mandatory fields:
○ Application Instructions
Select 35 Load Out .
○ LDC Type
Select Outgoing.
○ Mode of Transport
Select one from:
○ 01 Road
○ 02 Rail
○ 03 Sea
○ 04 Inland Waterway
○ 05 Air
○ 06 Postal Service
○ 90 TSW - Not Applicable
○ Event
Select Unload.
○ Event Location
Select a TSW location using the search help provided.
○ Material
Select a material, such as corn, wheat and so on, using the search help provided.

4. Choose .

In the next screen, a new row for this LDC object is created. At this stage, the object is created only
temporarily as “$1” is displayed in the LDC ID field.
5. Click the linked text “$1” which jumps to the detailed screen.
6. Enter the required information on the Event Details and Weights Details tabs.

7. Choose .

The system updates the LDC ID field from the temporary number “$1” to a new ID number.

8. To check the log, choose .

Results

You have successfully created a new Load Out Application Document (LAD).

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9.6.1.2.2 Matching Load Out Application Documents

Prerequisites

● You are authorized to work in the Manual Application Workcenter(MAW).

You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .
You have maintained the required master data settings in the Business Rule Framework plus.

Context

You use this procedure to match Load Out Application Documents (LAD) with stored goods application
documents (CAD).

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Manual Application Workcenter .

You can also execute the transaction code /ACCGO/MWC.

The Manual Application Workcenter screen appears.

2. In the dialog structure, choose Application Workcenter Load Out Matching .

The Load Out Matching screen appears. The default value in the Display Options is Match Load Outs.
3. Select the relevant Value Schedule and its Version. For more information on Value Schedule, see Discount
Premium Quality Schedule [page 14].

4. Choose .

The next screen displays a list of possible LAD items.

5. Select the required LAD and choose Find Matches.

The Find Matches pop up box opens.

6. Select the application document number of the CAD or AAD to which you want to match the LAD or in the
Stored Goods App Documents field using the input help and click Choose Matches.

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 The matched items is displayed under the section Matches. In this line item, along with the application
document number and Load Out Item Quantity, you can see the Load Out Current Quantity of both the LAD
and CAD items, which are adjusted by the DPQS Value Schedule.

In addition, the line item also displays the residual quantity of both CAD and LAD items. This is the result of
matching the LAD and CAD.
7. Choose Save Matches.
8. In the popup, choose the required option between Keep in Storage and Scrap to determine how to clear out
the residual stock.

9. Choose .

Results

The status of the LAD item changes from Ready to Match to Matched. The status of the CAD item shows as
Loaded Out.

9.6.1.3 Creating Storage Program Types

Prerequisites

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Storage Location for Negative Posting .
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock Maintain
Movement Types .

Context

You can use this procedure to create storage program types.

Currently, the functions to calculate and settle the storage fees associated with commingled commodities are
not supported in SAP Agricultural Contract Management. However, the solution does support the function to
create a storage program type that can be associated with the quantities on a commingled application
document. You can download these associations and manually calculate the fees.

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Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Commingled Loads Maintain Storage Program Types .

You can also execute the transaction code /ACCGO/STORAGE_TYPE.

The Change View "Storage Program Type": Overview screen appears.

2. Click the New Entries button to make the Storage Program Type table editable.
3. Define the following fields in the table:
○ Program Type

 Note

Define a unique program type.

○ Description

4. Choose .

Results

You have created a storage program type which can now be assigned to a storage location that is done in the
Business Rule Framework plus as part of master data settings.

9.6.1.4 Creating Storage History Report

Prerequisites

● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock
Maintain Storage Location for Negative Posting
● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Contract Application Commingled Stock
Maintain Movement Types

Context

The CAD Storage History feature helps you to create a storage report which displays various details about an
application document. For example, it will display the status, quantities, Moisture and so on. Note that this

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report displays the unique characteristics of every application document based on the selection criteria. From
this report you can also simulate a storage settlement even if you are not authorized to use the Storage
Settlement Workcenter.

Once the report is run, the application documents are assigned either to an Inventory Based Storage or an
Unload Based Storage. Inventory storage history refers to application documents that are assigned to
inventory based storage agreement. To enable this kind of generation, you must ensure that the Inventory Level
Based Agreement check box is selected in the Storage tab at the item detail level while creating a storage
agreement.

The Unload based storage history refers to application documents that are assigned to unload based storage
agreements. If the Inventory Level Based Agreement check box is not selected in the Storage tab at the item
detail level, then this report runs in the background.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Application
Commingled Loads CAD Storage History . You can also execute the transaction code /ACCGO/
STRG_HIST. The Storage History Report screen appears.
2. Select the Application Document number or the Storage Agreement number.

3. Choose .

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10 Contract Settlement

Use

Agricultural commodities are traded in domestic and international commodities exchanges or markets at
negotiated and mutually agreed upon prices. The price established for a purchase or sale is derived from price
indices or price futures that are determined by typical market forces such as supply and demand, as well as
market bias (speculation) and other dispositions, such as a trader's position in a particular commodity.

Contract settlement is an invoicing and billing pre-processor that consolidates multiple transactions against
one or more contracts. It uses schedules and other terms specified on the contract to calculate or determine
an adjusted price that is used to issue payment or perform customer billing. From a business process
standpoint, settlement takes place just after application. The contract application that takes place between the
contract and the application document is the basis on which settlement is initiated.

Trading contracts are the basis for all traded agricultural commodity purchases and sales. These specialized
instruments specify the current or future pricing of the sale or purchase, delivery or shipment terms, the
payment terms, and the terms that govern the logistical execution of the contract.

Trading contracts are not only the basis for trade execution; they also contain the legal terms and conditions
that apply for financial settlement. Contracts specify a set of schedules and optionalities that represent
monetary adjustments (a premium or discount) that may be applied to the base price to determine any
payments or amount due. These monetary adjustments are frequently referred to as value adjustments.

Integration

The following are required for contract settlement process:

● All master data including vendor, customer, material group, unit of measure conversion and foreign
currency exchange have been set up in system.
● GTM (Global Trade Management) Expense Management is implemented and capable of performing
planned expense accrual, settlement with service provider, and recovery from counterparty. Account
determination for Vendor Billing Document (VBD) is implemented to determine accrual account, deferred
or regular cost of service account, and deferred or regular service revenue account.
● Material Management (MM) invoicing and SD (Sales and Distribution) billing are fully implemented and are
functional with FI (Financial Accounting) AP (Accounts Payable) and AR (Accounts Receivable).
● The entire Pricing Customizing has been implemented.
● The condition types for DPQS, optionality, and expenses have been configured in the pricing procedure.
● You have configured the ABD (Agency Business Document) billing types appropriately.

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Features

Settlement is an iterative process that can be carried out several times during a contract's life cycle. This
depends on the type of transaction (purchase or sale) and the contract terms. Contract settlement is broadly
organized into the following three types:

● Provisional Settlement
A financial settlement of a load or unit using a provisional price or using estimated weights and grades with
invoicing adjustments occurring after actual weights and grades are received. It is possible to have several
provisional settlements per shipment.
Provisional settlements are created under the following circumstances:
○ When only a provisional weight or provisional grade is available
○ When only provisional price is available for a portion of the application document line or sub-line
○ When a user can create a subsequent provisional shipment settlement with changed weight, grade,
and price from previous provisional settlement (with a validation that ensures an actual condition has
changed to prevent creation of a zero impact settlement)
● Final Settlement
A financial settlement of a load or unit using an established price, and actual weights and grades
● Adjustment Settlement
A financial settlement created for a settlement document after the final settlement document has been
released for invoicing. The purpose is to capture additional financial adjustments that have happened to
the preceding invoice or billing document due to additional expenses on the contract and so on.

The manual pricing lot assignment is implemented in the application document. Settlement only receives
manually assigned pricing lots. The maintenance of pricing lots in settlement is not supported.

More Information

● Settlement Group [page 214]

● Agency Business Document [page 224]
● Maintenance of Settlement [page 226]
● Non-Standard Settlement [page 238]
● Invoicing Settlements [page 248]
● Revenue Recognition and Purchase Realization [page 251]

10.1 Settlement Group

Use

A settlement group is a collection of settlement units. Each application document item is mapped to one
settlement unit, and multiple settlement units are grouped into a settlement group using grouping criteria.
Predefined split criteria prevent the grouping of two settlement units into the same group. When both grouping
criteria and split criteria are applied at the same time, split criteria always overrides grouping criteria.

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For each settlement group, an agency business document (ABD) is created with the ABD items mapped to the
settlement units. For example, if the settlement group is formed out of two settlement units, an ABD would be
created with two line items and the details for each of the items would be copied from the corresponding
settlement unit. The settlement group corresponds to the header in the ABD.

Activities

You can perform the following maintenance tasks for settlement groups:

● Specify a deferred date and term

● Specify the print order sequence on the lien table
● Deactivate the lien (this deactivates the lien from the respective settlement units)
● Release, approve, or reject the settlement group

To display a settlement group, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Display Settlement Group .
2. Choose Display.

3. Enter the required details and choose .

You can view the settlement group details here. You cannot make any changes to any of the fields in this
screen.
You can also view the settlement groups while creating a settlement. For more information, see Creating
Settlements [page 227].

More Information

● Settlement Unit [page 215]

● Settlement Pricing [page 218]

10.1.1 Settlement Unit

Use

All settlement related calculations happen at the settlement unit level. During creation of the settlement group,
the agency business document (ABD) is created in the background as well and contains all MM invoice relevant
data, such as vendor or quantity information and information about the payable amount. Several settlement
units are grouped together based on a grouping criteria or split criteria to form settlement groups. Each
settlement unit becomes a line item in an ABD.

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Prerequisites

Validation rules have to be executed before the grouping of settlement units. The validation rules should
prevent the following:

● Purchase and sales units to one settlement group

● Multiple counterparty to one settlement group
● Multiple terms of payment to one settlement group
● Multiple delivery terms to one settlement group
● Multiple currencies to one settlement group
● Multiple deferred terms to one settlement group
● Intercompany and intracompany to one settlement group
● Provisional and final settlement to one settlement group
● Multiple lien holder to one settlement group
● Multiple contract types to one settlement group

Features

The settlement workcenter provides the ability to combine several settlement units into a settlement group.
This grouping of the settlement units could be automatic or proposed.

In automatic grouping, a business rule is applied to group the settlement units together. This rule identifies
which fields have to be considered for grouping the settlement units and the values for these fields. This will be
a selection rule (Yes/No). When the user wants to automatically group the settlement units, the settlement
workcenter uses this rule.

In proposed grouping, the user provides grouping criteria to group the settlements for a set of application
document items (which may or may not have been assembled in application).

The settlement unit has the following features:

● Payment Split
This occurs only on the purchase side. This enables you to split the payment due to a vendor with their
business partner. The trading contract should specify the business partners with whom the payment can
be split based on a percentage or based on a fixed amount. For example, vendor X wants to split the value
of its settlements across vendor A and vendor B equally, then the split value rule will be vendor A - 50%,
vendor B - 50%. So whenever a settlement occurs for vendor A, the value of the settlement will be split and
paid to vendor A and vendor B. If another split percentage is entered by the user in the settlement work
center, the payment split value percentage maintained here will not be used. Once you have approved a
document which has payment split, a payment split accounting document number is generated. You can
view this at the settlement group level.
● Expenses Tab
For each trade, planned expense can accrue and actual expenses occur. Those expenses and in many
instances need to be settled together with the primary trade to provide consolidated invoice and billing
capability to vendor and customer. For more information see, Expense Management [page 129].
● Lien Holders Tab
These are defined for vendors sharing titles of goods in the trading contracts. When there are lien holders
defined for a vendor, payment to vendor is always done by check and bears the names of both vendor and

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 lien holder. When a settlement unit or settlement group is generated, the liens are retrieved for the vendor,
commodity, state, and country, and dates (with the current settlement date). If the vendor of the
settlement is in a partnership, all the liens associated with the partnership and the other vendors in the
partnership will be retrieved. In the settlement unit, you can deactivate a lien for the particular settlement
unit by deselecting the Active checkbox.
On the SAP Easy Access screen, choose SAP Agricultural Contract Management Contract Settlement
Maintain Lien Settings to maintain all lien related data. In this master data transaction, you can add,
change, and display the lien. A new lien ID is generated for each lien added to the vendor. You can add
several liens for the same vendor.
To update lien data for a settlement unit or settlement group, go to SAP Easy Access screen and choose
SAP Agricultural Contract Management Contract Settlement Settlement Workcenter . You can then
choose Settlement Lien Update.
● Conditions (Purchase) Tab
The value for pricing is determined from the CPE conditions maintained in contract. The pricing
determines the gross price of the settlement document. The pricing is also important to determine the
category of the settlement provisional or final. For more information see, Commodity Pricing Engine [page
56]
● DPQS Tab
It is specified in contract, with possibility to overwrite certain quality factor at contract level. You can also
specify the weight and quality certificates to govern in the contract. You can also specify the governing
weight and quality certificates for different types of settlement for invoicing. You can also negotiate the
DPQS values in settlement. for more information, see Discount Premium Quality Schedule [page 14]
● Optionality Tab
This is derived from the contract. Optionality related to the particular load and its relevant discounts and
premiums are retrieved in settlement. They also affect the net value on the settlement unit. For more
information, see Contract Optionalities [page 40]
● Deferred payment
This is only valid for a purchase scenario. Deferred payments occurs is when the payment to a vendor is
delayed up to a particular date. Deferred payment lets the customer pay a lump sum on a decided date to
the vendor for several transactions rather than paying as soon as each transaction takes place. When a
transaction takes place, the payment is put on-hold in a separate deferred account. On the deferred
payment date, the amount from this account gets release to the vendors account. For a deferred payment
scenario, the invoice is always put on a Settlement Hold Invoice status. On the deferred payment date, you
must change the status from Settlement Hold Invoice to Release Invoice in the Settlement Approval Queue.
You can maintain the deferred payment details either at contract application or at contract settlement
level. Following are features of deferred payments:
○ Deferred payment and pre-payment do not occur at the same time.
○ Payment cannot be deferred on the contract once settlement is released.
○ If the payment is deferred on the contract once the settlement is complete, you need to defer the
settlement.
○ Payment is deferred for the entire amount on the settlement group.
○ Information in settlement, which is taken from the contract (service fee, pre-payment, deferred
payment), should not change on the contract after the settlement is released. Settlement will not
consider any changes.

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More Information

Settlement Pricing [page 218]

10.1.1.1 Settlement Pricing

Use

Contract settlement needs to determine a base price before applying any adjustments to that price. You
specify the prices at a contract line item or contract line item quantity level, which is also known as pricing lots.
In some cases, the price that may be established is known as a provisional price. That is, it is not a final or fixed
price, but can be used to calculate payments for a load or unit before final price is established and before final
settlement of the contract takes place.

Contract settlement is designed to evaluate and consume pricing lots that are associated to a contract line
item at either the item or sub item level. It also contains a pricing aspect and validity period. Settlement also
tracks which pricing lots have been consumed for settlement purposes to ensure that prices that are specific
to a quantity, contract line, and delivery period are referenced during settlement.

One of the key processing features of settlement is the ability to adjust prices based on a set of quality and
quantity criteria that are associated with a specific trading contract. A GTM contract includes a set of
schedules and other premiums and discounts that should be applied during settlement process of a shipment
or a contract.

There are two ways in which price can be allocated to a settlement document. During provisional settlement,
available pricing is distributed according to pricing distribution rules. Provisional pricing is retrieved for
quantities for which pricing is not established. This does not change any existing pricing lot distributions.

During final settlement, pricing lots are distributed to the load being finally settled, based on pricing
distribution rules. For final shipment settlement process, pricing lots that were already distributed to other
loads can be undistributed and then distributed to the application document line or sub-line being settled.
During final shipment settlement, the pricing lots assigned to the application line or sub-line are locked for
provisional settlement. The pricing lots assigned are not locked.

Features

● Price Override Tab

You can view this at the settlement unit level. This facility allows the overriding of prices at the item level in
the provisional settlement. The manual price override feature shows the pricing details and allows the user
to enter the override price. After the override price is copied into the settlement document, the settlement
values are recalculated. You can perform the price override for each lot individually, or you can copy the
default price at header level to all lots by choosing the Copy pushbutton. You can also maintain the reason
code and the reason text here.
● Contract Price Determination
The system determines the contract price from four pricing types namely, basis, futures, full price, and
provisional price. The weighted average of the four pricing types gives the contract price.

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● DPQS Tab
You can view this at the settlement unit level. The discount or premium on a settlement amount due to the
deviation in the quality of the goods received or goods issued.
● Expenses Tab
You can view this at the settlement unit level. You can change the values in this tab page. Expenses also
affect the net value in settlement.
● Optionalities Tab
You can view this at the settlement unit level. This is derived from the trading contract. The optionality
related to the particular load along with its relevant discounts and premiums are retrieved during
settlement. The optionality also affects the net value on the settlement unit.

More Information

● Commodity Pricing Engine [page 56]

● Pre-Payments [page 221]

10.1.1.1.1 Foreign Exchange Rates in Settlement

Use

If foreign currencies are involved in your trading scenario, the settlement process uses the foreign exchange
(FX) rates provided by the Commodity Pricing Engine (CPE) to calculate the gross amount. The settlement
process uses internal FX rates from the TCURR table to calculate DPQS, optionality, and expense amounts.

When a settlement is being determined as provisional or final, the FX rate status is taken into account. If the FX
rate is not fixed, the settlement cannot be made final and revenue recognition or purchase realization cannot
take place.

More Information

Commodity Pricing Engine [page 56]

10.1.1.1.1.1 Overview of Foreign Exchange in Settlements

Use

Foreign Exchange (FX) functionality has been developed to provide flexibility when completing Settlements in
international transactions, where the Source and Target Currencies are different.

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Features

During the Settlement, if the Source and Target Currencies are different, a user should be able to provide a
negotiated FX rate using this functionality. FX can be applied for any Settlements that fall in the categories
mentioned below :

● Non-Standard Settlement
○ Washout Scenario. For more information, see FX Functionality in Washout Settlement [page 241]
○ Circle Scenario. For more information, see FX Functionality in Circle Settlement [page 247]
○ Cancellation Scenario. For more information, see FX Functionality in Cancellation Settlement [page
244]
● Standard Settlement
○ Sales Scenario
○ Purchase Scenario
○ Intercompany Scenario
● Returns Settlement
○ Full Returns Scenario. For more information, see FX Functionality in Full Returns Settlement [page 237]
○ Partial Returns Scenario. For more information, see FX Functionality in Partial Returns Settlement
[page 237]
● Reversal Settlement. For more information, see FX Functionality in Reversal Settlements [page 235]
● Storage Settlement. For more information, see FX Functionality in Storage Settlement [page 262]

Scenarios handled by the FX functionality

In the Settlement screen, the scenarios that are handled by FX are :

● Settlement Creation : After proposing the Groups in Create Settlement screen, FX will be displayed in the:
○ Settlement Group: Group FX Negotiation tab will appear at the Settlement Group header and will show
the
○ Amount type
○ Source Currency
○ Target Currency
○ Origin FX
○ Negotiated FX
○ Settlement Unit
○ Amount type
○ Source Currency
○ Target Currency
○ Origin FX
○ Negotiated FX

The prices on the Settlement Creation screen will change if the negotiated FX Rate is changed manually. This
change is called Re-pricing and occurs whether the manual update is done at the Settlement Group or
Settlement Unit level.

After the Re-pricing is done and the new FX rate is provided, the FX rates are transferred from the Settlement
Group FX tab to the Settlement Unit FX tab. The Settlement amounts at Unit level are then recalculated based
on the Negotiated FX rate. This rate will change the Total Settlement amount, Net amount, and the gross
Amount if gross amount is also Re-priced.

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At the Unit FX tab, if the Negotiated FX rates are given directly and Re-pricing is done, only the FX tab at Unit
level is changed. There is no change at the Group FX tab. However, the Settlement amounts will change if data
changes in either the Group or Unit FX tabs or both.

● At the Change workcenter, all the FX data that is changed at the time of creation will be moved to
Settlement Group/Unit level. However, the process of changing the FX data at Group/Unit Level is same as
discussed in the Creation of Settlement. For more information, see Creating Settlements [page 227]. After
releasing the Settlement FX tabs in both, the Group/Unit become disabled. Hence, at Settlement Approval
also, no FX data can be changed.
● Target Currency flows from the various above mentioned scenarios until it reached the Settlement screen.

Origin FX calculation

For Settlement amount calculation, the Base amounts for various amount types are multiplied with their
corresponding Origin FX values. Origin FX value is basically the exchange rate from the TCURR table based on
From Currency and To Currency. Default rate type “M”is considered for computation.

10.1.1.1.2 Pre-Payments

Use

You can choose to make a down payment on a contract. This initial payment is called pre-payment and a
provisional settlement is done. The pre-payment amount is retrieved at the time of settlement. This does not
affect the net amount on the settlement unit. However, when the invoice is created, the system checks if a pre-
payment exists and clears the pre-payment posted earlier.

Features

● You can make a pre-payment on a contract, for both sales and purchase orders. (see Creating Pre-Payment
Requests [page 50])
○ In the case of a purchase order, a pre-payment is made. During invoicing, the down payment is cleared.
○ In the case of a sales order, a pre-payment is requested. At the time of billing, clearing document is
posted for corresponding pre-payments.
● A tab page is provided at the group level to display all the pre-payments existing for a contract or for an
order of the settlement units in the group. For more information, see Settlement Unit [page 215] and
Settlement Group [page 214].
● A field is provided on the settlement unit to capture the consumption amount with the pre-payment
amount defaulted by the system. You can also overwrite the consumption amount.

Example

For a sales order value of $10,000 you can choose to make a pre-payment of $4,000. For the pre-payment, you
can manually adjust the consumption amount as $2,000 indicating that you want to consume only $2,000 of

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the pre-payment amount. At the time of invoice creation, the final amount is $10,000 though a manual clearing
of only $2,000 is required for settling the payment.

More Information

● Retrieving Pre-Payments [page 222]

● Clearing Pre-Payments [page 223]

10.1.1.1.2.1 Retrieving Pre-Payments

Prerequisites

You have performed the following:

● Maintained the pre-payment terms and the consumption amount at the time of contract creation.
● Posted the pre-payment as follows:
○ To Post Customer Down Payment, use transaction F-29.
○ To Post Vendor Down Payment, use transaction F-48.

Context

To make the final settlement on the contract, you retrieve the pre-payment amount that was initially made.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter Create Settlement .
2. Enter the application document number.

3. Choose .
4. Select the row for the relevant application document and then choose Propose Groups.

The pre-payment data and the available amount to be consumed for the entered reference document are
displayed.
5. The system defaults the consumption amount to the available amount.

Note that you can also manually overwrite this amount.

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6. Save your changes.

10.1.1.1.2.2 Clearing Pre-Payments

Prerequisites

You have performed the following:

● Maintained the pre-payment terms and the consumption amount at the time of contract creation.
● Posted the pre-payment as follows:
○ To Post Customer Down Payment, use transaction F-29.
○ To Post Vendor Down Payment, use transaction F-48.
● At the time of settlement creation, the posted pre-payments are retrieved in the Settlement Workcenter.

Context

You use this procedure to clear the retrieved pre-payment data.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter Change Settlement .

2. Enter the required group data and choose .

3. From Settlement Workcenter, release the settlement document.

The settlements are displayed in the approval queue.

4. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .

You can check the status of the pre-payment in Manage Pre-Payment Requests report.

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10.2 Agency Business Document

Use

The agency business document (ABD) is a superior term for sales and purchase activities and can be divided
into two sub document types:

● Expense settlement document for sales scenario

● Vendor Billing Document (VBD) for purchase scenario

Both document types provide the same functionality to the user but they use different kinds of master data
sets. The expense settlement document uses customer master data and settings, while the VBD uses vendor
master data records and settings. The third party purchase and third party sales scenario is adjusted by the
ABD, which is embedded in the settlement process and placed in the process flow between the settlement
group or settlement unit and the MM invoice.

During creation of the settlement unit, the ABD is created in the background and it contains all MM (Material
Management) invoice relevant data, such as vendor or quantity information and information about the payable
amount. The invoice retrieves its information from the ABD, instead of the settlement group or settlement unit.
ABD also provides the functionality of full pricing, uploading attachments, output determination and so on.

Features

For third party sales, the ABD behaves in the following way:

● It is statistical and does not do any postings to FI (Financial Accounting).

● The billing due list displays deliveries that are associated with the approved ABD.
● Financial postings are made out of the SD billing document.

For third party purchase, the ABD behaves in the following way:

● It is statistical and does not do any postings to FI.

● Information from settlement flows to standard MM Invoice.
● Financial postings are made from the MM Invoice.
● Each item on the ABD creates an item on the invoice.

More Information

Displaying and Maintaining Agency Business Documents [page 225]

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10.2.1 Displaying and Maintaining Agency Business
Documents

Use

You can display and maintain an agency business document (ABD) using this process.

Process

For third party sales and purchase scenario, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. In Create Settlement, choose one application document.
3. Create a temporary settlement group and temporary settlement unit. No ABD is created.

4. Choose . This generates the settlement group, which triggers the following:
○ Creation of settlement group and settlement unit (status created, instead of temporary)
○ Creation of ABD after the creation of the settlement unit
5. Save the settlement unit or the settlement group.
This updates the ABD in the background.

6. In Change Settlement choose , and then choose Release.

The Enter a Long Text screen appears.
7. Enter a reason code to release the settlement group.
The settlement unit moves into the settlement approval queue, while the ABD remains unchanged.
8. In the Settlement Approval Queue, approve the settlement group or settlement unit and release the ABD
for accounting. The status for the appropriate ABD will change to Approved as well.

Result

The information from settlement flows into the following documents:

● In sales, billing due list displays deliveries that are associated with the approved ABD.
● In purchase, ABD information flows into MM (Material Management) invoice. The system makes financial
postings from the SD (Sales and Distribution) billing document or the MM invoice.

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10.3 Maintenance of Settlement

Use

There are several stages in the contract settlement process, such as creating, changing, releasing, approving,
canceling, reversing, and returning. For each settlement group, an ABD is created. The pricing of this ABD is
carried out by settlement. Once the settlement is approved, a billing (SD) or invoice (MM) document is created.
For sales side settlement, a billing document is created manually. For purchase side settlement, an MM invoice
is created automatically. Depending on whether the application is provisional or final, and whether the contract
has full price (both basis and futures), the settlement becomes either provisional or final.

Features

During settlement, a settlement document is created. A settlement document is a collection of settlement

groups. The settlement document contains details regarding pricing, discounts, premiums, fees, and so on.
The ABD or billing simulation ABD is created from a settlement document. Next, either an MM invoice is
created for a purchase scenario, or an SD billing document is created for a sales scenario. A revenue
recognition ABD is subsequently created, after which revenue is recognized.

Activities

This section explains the following activities:

● Settlement Workcenter [page 226]

○ Creating Settlements [page 227]
○ Cancelling Settlements [page 230]
○ Releasing Settlements [page 231]
○ Approving or Rejecting Settlements [page 232]
○ Adjusting Settlements [page 233]
○ Reversing Settlements [page 234]
○ Returning settlements [page 236]

10.3.1 Settlement Workcenter

Use

The settlement workcenter provides several settlement related functions.

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Features

The settlement workcenter contains a selection screen. It contains several functionalities related to settlement
like create, change, adjust, reverse, returns, and so on.

A provisional settlement is created if there are no final prices and a final application document. For a provisional
settlement, the final step is invoice creation. You cannot recognize revenue of a provisional settlement.

Final settlement is the last settlement for a trading contract after contract is fulfilled, that is, all settlements are
done on the contract. This settlement is performed when the contract is fulfilled, price is fully established, and
all expenses and services are recorded. Balances from previous settlement document, if any, are computed for
that contract. The payment type applicable is final payment or invoice. The final step is revenue recognition or
purchase realization.

You can view Commodity Pricing Engine information in the settlement workcenter. This information is display
only.

Activities

You can perform the following activities in the settlement workcenter:

● Creating Settlements [page 227]

● Cancelling Settlements [page 230]
● Releasing Settlements [page 231]
● Approving or Rejecting Settlements [page 232]
● Adjusting Settlements [page 233]
● Reversing Settlements [page 234]
● Returning Settlements [page 236]

10.3.1.1 Creating Settlements

Prerequisites

A contract application exists.

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation.

● For Sales settlement, see FX functionality in Sales Settlement [page 229]

● For Purchase settlement, see FX Functionality in Purchase Settlement [page 228]
● For Intercompany settlement, see FX functionality in Intercompany Settlement [page 230]

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Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Create Settlement.

3. Enter the required details and choose .

4. Choose the required document and then choose .

5. Choose Proposed Groups.

Settlement units and settlement groups are simulated. You can review the simulated settlement group and
unit by choosing (icon) .

6. In the Settlement Group group box, choose to generate the document.

Results

You have created a settlement document.

10.3.1.1.1 FX in Purchase Settlement

Use

This process is used to implement the FX functionality in Purchase Settlement.

Prerequisites

To implement the FX functionality in Purchase Settlement, the source and target currencies need to be
different and the settlement has to be an international settlement.

Features

The following can be observed In the Purchases Settlement scenario:

● The Purchase Order Currency will flow as Target Currency in the Settlement Group FX and Settlement Unit
FX tabs.
● The rest of the process for negotiation remains the same as discussed in the Overview. For more
information, see FX Overview [page 219]

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Process

To implement the Purchase Settlement scenario, proceed as follows:

● Pricing currency in the contract will be the source currency.

● The settlement currency would be derived from the Order (be it Sales/Purchase/STO) Currency.
● If both are different, one can do the negotiation. The rest of the process is the same as discussed in the
Overview. For more information, see FX Overview [page 219]

10.3.1.1.2 FX in Sales Settlement

Use

This process is used to implement the FX functionality in Sales Settlement.

Prerequisites

To implement the FX functionality in Sales Settlement, the source and target currencies need to be different
and the settlement has to be an international settlement.

Features

The following can be observed In the Sales Settlement scenario:

● The Sales order currency shall flow as Target Currency in Settlement Group FX and Settlement Unit FX
tabs.
● The remaining process for negotiation shall be same as discussed in the Overview. For more information,
see FX Overview [page 219]

Process

To implement the Sales Settlement scenario, proceed as follows:

● Pricing currency in contract will be the source currency.

● Settlement currency would be derived from the Order (be it Sales/Purchase/STO) currency.
● If both are different, one can negotiate. The rest of the process remains the same as discussed in the
Overview. For more information, see FX Overview [page 219]

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10.3.1.1.3 FX in Intercompany Settlement

Use

This process is used to implement the FX functionality in the Intercompany Settlement.

Prerequisites

To implement the FX functionality in Intercompany Settlement, the source and target currencies need to be
different and the settlement has to be an international settlement.

Features

The following can be observed In the Intercompany Settlement scenario:

● STO Currency shall flow as Target Currency in Settlement Group FX and Settlement Unit FX tabs.
● The remaining process for negotiation shall be same as discussed in the Overview. For more information,
see FX Overview [page 219]

Process

To implement the Intercompany Settlement scenario, proceed as follows:

● Pricing Currency in Contract shall be the Source Currency.

● Settlement Currency would be derived from the Order (be it Sales/Purchase/STO) Currency.
● If both are different, one can do the negotiation. The rest of the process for negotiation remains the same
as discussed in the Overview. For more information, see FX Overview [page 219]

10.3.1.2 Cancelling Settlements

Use

You use this procedure to cancel a settlement document, settlement unit, or settlement group.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Change Settlement.

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3. Enter the required details and choose .
4. In the Settlement Group group box, choose the settlement group line item to display the relevant
settlement units.
5. In the Settlement Unit group box, choose the settlement unit line item.

6. Choose and then choose Cancel.

The selected settlement unit is canceled.

 Note

● You can settle the same contract application by following the settlement process from creating a
settlement onwards. For more information, see Creating Settlements [page 227].
● If a particular settlement group has only one settlement unit, the settlement group also gets canceled
along with the canceled unit.

10.3.1.3 Releasing Settlements

Use

You use this procedure to release a settlement for approval or rejection.

Prerequisites

A settlement document has been created.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Change Settlement.

3. Enter the required details and choose .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose and then choose Release.

The Enter Long Text screen appears.
6. Enter the correct reason code.

7. Choose .

 Note

You must make all required changes to the settlement document before you release the document. After
you release a document you must then approve or reject the settlement

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Result

You have released the document.

More Information

Approving or Rejecting Settlements [page 232]

10.3.1.4 Approving or Rejecting Settlements

Use

You use this procedure to approve or reject a settlement document.

Prerequisites

You have released the settlement document.

Procedure

To approve a settlement document, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .
2. Choose Settlement Approval Queue.

3. Enter the required details and choose .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose , then choose either Approve or Release Invoice.

 Note

● For a sales scenario, if you choose Approve, the settlement document gets approved and you create a
billing document manually in the transaction VF01.
● For a purchase scenario, if you choose Approve, the settlement document gets approved and an MM
invoice document is created automatically.
● For a non-self-billed scenario, if you choose Approve, the document goes into the Settlement Hold
Invoice status. In such a case, you choose Release Invoice to release the document for invoice creation.

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To reject a settlement document, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .
2. Choose Settlement Approval Queue.

3. Enter the required details and choose .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose , then choose Reject.

The Enter Long Text screen appears.

6. Enter a reason code and choose .

 Note

For a sales and purchase scenario, if you choose Reject, the settlement document can be edited. You can
then make the necessary changes and release the document. For more information, see Releasing
Settlements [page 231].

Result

You have either approved or rejected the settlement document.

More Information

Invoicing Settlements [page 248]

10.3.1.5 Adjusting Settlements

Use

Settlement adjustment lets you create settlement adjustment documents. This is used to make a financial
adjustment to the settlement units. Settlement adjustment does not update the application document or free
up any pricing lots. It only updates settlement reversal. Settlement adjustment is only possible after an
approved final settlement that has been invoiced.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .

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2. Choose Settlement Adjustment.

3. Enter the required details and choose .

You can view the simulated adjustment settlement document here.

4. Choose .
This generates a new settlement group ID for the adjusted document.

 Note

You can then create a settlement and continue the settlement procedure. For more information, see
Creating Settlements [page 227].

10.3.1.6 Reversing Settlements

Use

You use this procedure to reverse a settlement. A settlement reversal always creates a credit memo request on
sales or a credit memo on purchase side and will mark the linked application document as settlement reversed.
The sales credit memo request is created with reference to the original invoice and the purchase credit memo
with reference to the purchase order. There can be a partial or full settlement reversal. A partial settlement
reversal is executed when only a part of the settlement group is reversed, which means only a few settlement
units out of a group. A full reversal is the process where a credit for the entire amount of the settlement group is
created. The user cannot change any financial values.

Prerequisites

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation. Fore more information, see FX Functionality in Reversal Settlements [page 235]

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Settlement Reversal.

3. Enter the required details and choose .

4. In the Settlement Units group box, choose the document.

5. Choose .
In the Reversal Settlement Groups group box, a new line item containing the simulated settlement groups
appear.

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6. In the Settlement Group group box, choose the document.

7. Choose .
The selected groups are generated and a new settlement group ID and settlement unit ID is created. This
new settlement document will have the document category as R. You can view this category by choosing
the Details pushbutton inthe Settlement Group group box.

 Note

Once you reverse a settlement document, you can make adjustments to the values in the document. After
you have made the changes, you can release the settlement document and continue with the settlement
procedure.

More Information

Releasing Settlements [page 231]

10.3.1.6.1 FX in Reversal Settlements

Use

This process is used to implement the FX functionality in Reversal Settlement.

Prerequisites

To implement the FX functionality in Reversal Settlement, the following prerequisites need to be considered:

● The prerequisites for this process are the same as those required to execute a Reversalt scenario for
Contract Settlement. For more information, see Reversing Settlements [page 234]
● The source and target currencies are different and the settlement is an international settlement.

Features

All the settlement amounts from Forward Settlement document are copied to Reversal document, including all
the FX related details from the Group FX and Unit FX tabs.

Process

There is no negotiation involved in Reversal. Only the data from Forward document is copied to Reversal
document. These details can only be viewed and not updated as no negotiations are involved.

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10.3.1.7 Returning Settlements

Use

You can only return a final settlement document whose revenue has been recognized. This is invalid for a
provisional settlement scenario. Settlement return allows the selection of return application documents for
settlement creation. The settlement returns document once created goes through the same lifecycle as a
normal settlement document.

Prerequisites

You have created a Return Application document.

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation. For more information, see FX Functionality in Full Returns Settlement [page 237] for
Full Returns and see FX Functionality in Partial Returns Settlement [page 237] for Partial Returns.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Settlement Returns.

3. Enter the required details and choose .

4. In the Application group box, choose the document.

5. Choose .
In the Settlement Group group box, a simulated returns settlement group is created.

6. Choose .
A returns settlement document is created.

 Note

● You can then create a settlement document and continue the settlement process. For more
information, see Creating Settlements [page 227].
● Once you have created the invoice for the returns settlement document you must recognize revenue.

Result

You have returned a settlement document.

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10.3.1.7.1 FX in Full Returns Settlement

Use

This process is used to implement the FX functionality in Full Returns Settlement.

Prerequisites

The prerequisites for this process are the same as those required to execute a Full Returns scenario for either
sales or purchase. For more information, see Returning Settlements [page 236]

Features

All the settlement amounts from Forward settlement document are copied to Full Return, including all the FX
related details from the Group FX and Unit FX tabs.

Process

There is no negotiation involved in Full returns. All the data from the Forward document, including the FX
details, is copied to the Return document. These details can only be viewed and not updated as no negotiations
are involved.

10.3.1.7.2 FX in Partial Returns Settlement

Use

This process is used to implement the FX functionality in Partial Returns Settlement.

Prerequisites

To implement the FX functionality in Partial Returns Settlement, the following prerequisites need to be
considered:

● The prerequisites for this process are the same as those required to execute a Partial Returns scenario for
either sales or purchase. For more information, see Returning Settlements [page 236]
● The source and target currencies are different and the settlement is an international settlement.

Features

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The following can be observed In the Partial Returns Settlement scenario:

● All the settlement amounts from Forward settlement document are copied to Full Return including all the
FX related details from the Group FX and Unit FX tabs.
● Settlement amounts are computed by a partial factor and then shown in the Return document.

Process

There is no negotiation involved in Partial returns. Only the data from Forward document is copied to Return
document and a computation of Settlement amounts is done, keeping the partial factor in mind. These details
can only be viewed and not updated as no negotiations are involved.

10.4 Non-Standard Settlement

Use

The firm may enter into a purchase or sales agreement with a counterparty and then later determine that the
commodities should not be moved. In such cases, non-standard settlement is done and the two counterparties
settle the trading contracts involved. This occurs in scenarios, such as a washout, an underfill, a cancellation,
or a circle.

In the settlement document, the relevant scenario is indicated by the settlement type. This document is
generated for the scenarios followed by settlement realization. The non-standard settlement (washout/
underfill) document is available from pricing trading contract TC header document flow.

Prerequisites

Authorization Checks

● You have maintained the checks for washout, underfill, cancellation, and circle.
● The security profiles defined for standard settlement are used. The profiles include for settlement
execution, settlement approval, and settlement document display.

Features

● Washout (see Washout Settlement [page 239])

● Underfill (see Underfill Settlement [page 242])
● Cancellation (see Cancellation Settlement [page 243])
● Circle (see Circle Settlement [page 245])

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10.4.1 Washout Settlement

Use

Two trading parties who have the same contract terms (such as commodity and quantity) can agree to
mutually settle the contract with no movement of goods. This provides a report where you can manually select
the purchase or sales contract for a business partner, specify the quantity on each contract, and mark those
contracts with the relevant quantity for washout. Contracts with pre-payment cannot be washed out.

Prerequisites

● Both the sides have the same terms such as commodity, quantity, quality, time of shipment, delivery point,
and so on.
● The cancellation validations have been performed.

Features

● Modes of Washout
○ Test mode
Provides a what-if analysis to identify the washable contracts during or before negotiation of washout
with the counterparty. You should perform validations to determine if the selected contracts can be
washed out.
○ Creation mode
Generates the washout ID and performs the same validations as in the test mode to determine the
contracts that can be washed out. It also generates the washout TC and settlement.
● Washout Equity
If the firm owes equity due to the counterparty, the amount due is settled through material management
(MM) and if the counterparty owes equity due to firm, it is settled using the sales document (SD).

More Information

Creation of Washout [page 239]

10.4.1.1 Creation of Washout

Use

You use this process to washout a quantity on the lot.

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Prerequisites

You have performed the following validations:

● One purchasing contract and one sales contract should exist having open quantities to be delivered in the
selected period.
● Defined the commodities of all matching trading contracts (TCs) in material selection range or material
schedule. Further, validate the material schedules to determine the material intersection. Select only the
contracts having materials in the intersection for washout.
● The Exact Match checkbox indicates whether the delivery periods should be Exact Match or Loose Match.
In both cases, all sales and purchasing trading contracts with delivery periods overlapping with the entered
delivery range are first selected.
○ Exact Match
Further, evaluate to select only TCs on one side (sales or purchasing) and fully covering TCs on other
side. Match all the primary trading materials of those on sales and purchasing contracts to trigger
washout.
○ Loose Match
Remove the loosely matched TCs or adjust their delivery periods to match, in order to trigger the
washout process. The primary trading materials are different; however, the material intersection exists
based on material schedule evaluation.
● Evaluated the pricing status at the pricing lot level against the status on the screen. Open quantities of the
same pricing types are displayed and they can be selected from the TC for washout.
● Pre-Cancellation Check
Ensured that the lot to be washed out is not manually locked and that there is no outstanding pre-payment.

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to
be used for negotiation. For more information, see FX Functionality in Washout Settlement [page 241]

Process

1. The system generates the washout ID. The ID is prefixed by the letter W to indicate that it is a washout
type.
2. A new standard washout trading contract is created in the background.
3. The equity due is calculated based on the washout quantity between sales and purchase trading contracts
and their price difference. The result is either a “due from” or “due to” amount.
Equity due = (sales price * washout quantity) − (purchase price * washout quantity)
If the equity due is positive, settlement is a sales side. If the equity due is negative, the settlement is a
purchase side.
4. The washout settlement document is created. The document has details of the payment term and equity
due. This document is to be approved and posted to FI to correct the FI accounts.
5. To settle the equity due, the payment type ABD (Agency Business Document) is created.

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10.4.1.1.1 FX in Washout Settlement

Use

This process is used to implement the FX functionality in the Washout Settlement.

Prerequisites

To implement the FX functionality in Washout Settlement, the following prerequisites need to be considered:

● The prerequisites for this process are the same as those required to execute a Washout scenario for
Contract Settlement. For more information, see Creation of Washout [page 239].
● The Source and Target Currencies are different and the settlement is an international settlement.

Features

Target currency, Rate Type, and Effective date have been added to the sub-screen settlement document on the
Washout screen. This is to enable the FX handling feature in the Washout related settlement so that the FX
negotiation can be done in the Washout Settlement.

Process

To implement the Washout Settlement scenario, proceed as follows:

● At the initial Washout screen, the Target Currency is input enabled and the Rate type and Effective date are
disabled.
● When the Group ID is selected on the Washout screen, the Target Currency field is defaulted to Contract
Currency. Rate type and Effective date remain disabled.
● When the Target Currency is changed to a currency other than the Contract Currency, the Rate type and
Effective date will be enabled and defaulted to “M” and Current Date respectively.
● If the Target Currency is changed to the Contract Currency again, the Rate type and Effective date will
become disabled and be filled with blank values.
● While creating the Washout, the Settlement Group/Unit will be generated and the Target Currency, Rate
type, and Effective date will be mapped in the Settlement.
● Settlement Group FX/Settlement Unit FX tabs will be shown with the Target Currency so that the user can
provide the negotiated FX for the Washout Settlement.

 Note

Source currency will always be the Contract Currency and Target Currency is the currency which is
given in the Washout screen in the Target Currency field.

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10.4.2 Underfill Settlement

Use

The load delivered is less than the contract quantity. Such an underfill non-standard settlement is created
using the information through a batch job. The underfill document is available only from the pricing trading
contract (TC) header document flow.

Prerequisites

You have defined the tolerance values that are to be applied on the less delivered load.

Features

● The calculation of equity due and posts into unrealized gain or loss is based on the pricing defined by the
governing established trade pricing rules. The application rules pricing are enabled in Business Rule
Framework plus (BRFrules).
● When an underfill triggers cancellation, the pricing lot is assigned to the cancellation. You can determine
this pricing by applying the price determination rules and selecting the least preferred pricing. The
application rules pricing are enabled in Business Rule Framework plus (BRFrules).
● The underfill price is returned as a cancellation price for the remaining volume between delivery and
contract mean.

More Information

Maintenance of Underfill [page 242]

10.4.2.1 Maintenance of Underfill

Use

You use this process for underfill non-standard settlement.

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Process

1. When an underfill is triggered, the system generates an underfill ID. The cancellation database tables are
updated with the underfill quantity and the pricing lot from which the underfill occurs.
2. The system executes the settlement batch job periodically to process the cancellation data from the table.
3. A non-standard underfill settlement is created and equity due is calculated based on the underfill pricing
lot information and contract price.
4. When a standard settlement is created on the application for which an underfill exists, both the settlement
unit and the appropriate settlement group are highlighted in yellow. Two pushbuttons that are provided for
pull and remove underfill appear on the tool bar.
5. The system pulls underfill into settlement unit or removes underfill from settlement.
Pull Underfill
The Pull Underfill pushbutton is provided to pull the underfill non-standard settlement unit. If the underfill
exists, it pulls the underfill equity due and the underfill ID into the standard settlement unit. The status of
the non-standard settlement is changed to 'canceled' with appropriate reason code.
Note that when the 'canceled' status is triggered, the status cannot be manually changed. All non-standard
settlements with this status are not displayed in the approval queue.
Remove Underfill
The Remove Underfill pushbutton is provided to remove the underfill from the standard settlement unit and
the settlement net value is updated. This again makes it available for non-standard settlement.
6. The underfill equity due is not considered for reversals or returns. Alternatively, the Reversal With Underfill
indicator on the reversal/return settlement unit is set.
7. The cancellation of a settlement cannot occur if an active underfill is included in the standard settlement
unit. You can manually remove the underfill before canceling the settlement unit.

10.4.3 Cancellation Settlement

Use

During cancellation of a commodity or a particular pricing TC, the open quantity determines the maximum
amount of quantity that you can cancel. When such a cancellation is triggered, you can settle the equity due
using the non-standard settlement based on the pricing lot prices and cancellation prices for the contract.

Prerequisites

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation. For more information, see FX Functionality in Cancellation Settlement [page 244]

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Process

1. On Trading Contract Change screen (transaction WB22), enter the details such as the quantity to be
canceled, cancellation price, and cancellation fees on the Cancellationtab page.
When you save the contract, the system triggers a cancellation in the background.
2. The commodity contract (CCAK) cancellation information is updated in the cancellation database tables
for settlement run to pick up the data.
3. The system executes the settlement batch job periodically to process the cancellation data from the table.
4. Equity due is calculated based on the price difference and cancellation quantity. Any applicable fees
applied for cancellation is also calculated. This is shown as follows:
Settlement Gross Amount = (Cancellation qty * pricing lot price) −(Cancellation qty * cancellation price) +
(Cancellation qty * cancellation fee) + Lump sum fee in cancellation header table
5. The settlement document of cancellation type is created with the following details:
○ Net equity due
○ Itemized calculation at pricing lot level
○ Itemized fee
6. The following documents are created on approval of circle settlements:
○ On the purchase side, an invoice document is created.
○ On the sales side, it depends on the equity due as follows:
○ If the equity due is positive, a Debit memo request is created.
○ If equity due is negative, a Credit memo request is created.
Use transaction VF04 to create credit or debit memo respectively.

10.4.3.1 FX in Cancellation Settlement

Use

This process is used to implement the FX functionality in the Cancellation Settlement.

Prerequisites

To implement the FX functionality in Cancellation Settlement, the following prerequisites need to be

considered:

● The contract is created with Cancellation data.

● The prerequisites for this process are the same as those required to execute a Cancellation scenario for
Contract Settlement. For more information, see Cancellation Settlement [page 243]
● The source and target currencies are different and the settlement is an international settlement.

Features

The following can be observed In the Cancellation Settlement scenario:

● In the Cancellation tab, the Contract Rate type, Target currency, and Effective date are added.

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● When the Contract is changed in the Cancellation tab, the Contract Rate type, Target currency, and Effective
date shall be defaulted to “M”, Contract Currency and Current Date respectively.
● All these fields are mandatory in the Cancellation tab.

Process

To implement the Cancellation Settlement scenario, proceed as follows:

● After saving the Cancellation data in the contract, the Cancellation header table shall be updated with Rate
type, Target Currency, and Effective date.
● After the execution the Non-standard Settlement generation report, the Rate type, Target Currency, and
Effective date shall be transferred from the Cancellation header table to Settlement Group/Unit.
● All other FX related handling in Settlement shall remain the same as discussed in the Overview. For more
information, see FX Overview [page 219]

 Note

Source currency shall always be the Contract Currency and target currency is the currency which is
given in the Cancellation screen in the Target Currency field.

10.4.4 Circle Settlement

Use

Commodity contract involving the firm and multiple counterparties, where the firm is on the ends of such a
chain of transactions. The firm is both a seller and purchaser of the same commodity with different
counterparties. The counterparties agree to settle the contracts financially without physical delivery of goods.
Since the goods in the end remain with the same trading partner as the one selling it, equity due is settled
calculating the difference between the purchasing and sales price.

Prerequisites

● In the customer master data, the vendor should not be maintained as direct vendor.
● In the vendor master data, the customer should not be maintained as the direct customer.

Features

You can circle out the quantities on the contracts based on the mutual agreement between three
counterparties.

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Example

The firm has a sales contract with A as customer and a purchase contract with B as vendor. A is to provide the
firm with 100 LB and firm has to sell a quantity of 25 LB to B. Between A and B, there is a contract of 50 LB. A,
B, and, the firm mutually agree to circle out a quantity of 25 LB.

To nullify all the price differences, a reference price is agreed upon by all the counterparties.

Two settlements are created, one for sales and another for purchase in the circle process.

More Information

Creation of Circle Settlement [page 246]

10.4.4.1 Creation of Circle Settlement

Use

You use this process to create and approve settlement of circles.

Prerequisites

You have checked that both the sales contract and purchase contract have the same pricing status, delivery
dates, material, customer and vendor. The materials should match or should be within the optionality range.

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation. For more information, see FX Functionality in Circle Settlement [page 247]

Process

1. You enter the selection criteria. The system groups the contracts into exact match and loose match. Note
that circles cannot be created with contracts under loose match.
2. The system validates which contracts are relevant to create circles. Circle ID is generated.
3. Two circle settlements are created, one on the sales side and the other on the purchase side as follows:
On the sales side
○ All the sales side commodity items are involved as items in circle.
○ Equity Due = (Sales contract price * circled quantity) −(Reference price * circled quantity)

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 On the purchase side
○ All the purchase side commodity items are involved as items in circle.
○ Equity Due = (Purchase contract price * circled quantity) −(Reference price * circled quantity)
4. The following documents are created on approval of circle settlements:
○ On the purchase side, an invoice document is created.
○ On the sales side, it depends on the equity due as follows:
○ If equity due is positive, a debit memo request is created.
○ If equity due is negative, a credit memo request is created.
Use transaction VF04 to create credit or debit memo respectively.

10.4.4.1.1 FX in Circle Settlement

Use

This process is used to implement the FX functionality in Circle Settlement.

Prerequisites

To implement the FX functionality in Circle Settlement, the following prerequisites need to be considered:

● The prerequisites for this process are the same as those required to execute a Circle scenario for Contract
Settlement. For more information, please read Creation of Circle Settlement [page 246]
● The source and target currencies are different and the settlement is an international settlement.

Features

Target currency, Rate Type, and Effective date fields are added in the sub-screen settlement details on the
Circle screen. This is to enable the Circle related settlement with FX handling feature so that FX negotiation can
be done in the Circle Settlement.

Process

To implement the Circle Settlement scenario, proceed as follows:

1. At the initial Circle screen, the Target currency is input enabled and the Rate type and Effective date are
disabled.
2. When the Group ID is selected on the Circle screen, the Target Currency field is defaulted to Contract
Currency. Rate type and Effective date remain disabled.
1. When the Target Currency is changed to a currency other than the Contract Currency, the Rate type
and Effective date shall be enabled and defaulted to “M” and Current Date respectively.
2. If the Target Currency is changed to Contract Currency again, the Rate type and Effective date become
disabled and shall be filled with blank values.

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3. While creating the Circle, the Settlement Group/Unit shall be generated and the Target Currency, Rate type
and Effective date shall be mapped in Settlement.
4. Settlement Group FX/Settlement Unit FX tabs shall be shown with the Target Currency so that user can
provide the negotiated FX for Circle Settlement.

 Note

Source currency shall always be the Contract Currency and target currency is the currency which is
given in the Target Currency field on the Circle screen.

10.5 Invoicing Settlements

Use

A trading document that has been settled can be invoiced. Both a provisionally or finally settled document can
be invoiced. Each settlement group must be made into one invoice. However, for the sales billing document,
certain split criteria does not allow some deliveries to be invoiced together. Each item on the ABD becomes an
item on the invoice. A purchase invoice is called MM invoice and a sales invoice is called a billing document or
SD invoice. Financial postings are made out of the billing document or the MM invoice. An MM invoice is
created automatically but a billing document must be created manually.

Integration

All configurations for standard MM Invoice and SD billing is maintained.

Features

● One settlement group should be billed as one invoice. It consists of the following:
○ All split criteria's on the invoice have to be a split criteria on the settlement group as well.
○ Flow of values is only from settlement group or unit to the ABD and never from ABD to settlement.
● Credit Memo
A credit memo is issued by the seller to the buyer. The seller issues a credit memo for a lower amount than
the invoice. This is issued if the goods are incomplete, damaged, or incorrect. A credit memo is also issued
if the buyer has paid too much money, or has been under charged.
In some cases, a settlement document for a particular application document is invoiced and subsequently,
a new settlement document is created for the same application document. If the amount in this settlement
document is negative or lesser than the previous billing document, then a credit memo is created.
For a sales scenario, when a settlement document is approved, a credit memo request is created in the
background, with reference to the previous billing document. You then create a credit memo by entering
the credit memo request number in the transaction VF01.
For a purchase scenario, when a settlement document is approved, a subsequent credit is created.

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● Debit Memo
A debit memo reduces the amounts payable to a vendor, for example, when you send damaged goods back
to your vendor. When a company fails to pay or short-pays an invoice, a debit memo is issued for the
balance and any late fees owed. Debit memos are identical to invoices.
In some cases, a settlement document for a particular application document is invoiced and subsequently,
a new settlement document is created for the same application document. If the amount in this settlement
document is positive or higher than the previous billing document, then a debit memo is created.
For sales scenario, when a settlement document is approved, a debit memo request is created in the
background, with reference to the previous billing document. You then create a debit memo by entering the
debit memo request number in the transaction VF01. All items that have to be billed and that are not part
of a delivery will be created as a debit request. This has to be a special debit memo request type, which can
be invoiced together with the delivery or a normal debit request.
For purchase scenario, when a settlement document is approved, a subsequent debit is created in the
background. All items that have to be billed and that are not part of a delivery will be created as a debit
request. This has to be a special debit memo request type, which can be invoiced together with the delivery
or a normal debit request.

 Note

○ In case an invoice or debit memo is going to be reversed a credit memo has to be created.
○ In case a credit memo is going to be reversed a debit memo has to be created.

● A billing document is created during a sales scenario. It can be created for a provisional or full settlement.
A billing document is created manually. You can create a billing document only after the settlement is
approved. In case of a credit or debit memo request, the billing becomes order-related so you must select
the Order-related checkbox on the Maintain Billing Due List screen in the transaction VF04.
● An invoice is created for a purchase scenario. It can be created for a provisional or full settlement. Once the
settlement document is approved, an invoice document is created automatically.

 Note

○ In case of multiple billing documents for the same delivery, only the first invoice would be based on
the original document. Subsequent invoices will be billed as a debit or credit request. For example,
final settlement after provisional settlement would be billed as debit or credit request.

Activities

● You can create a billing document in transaction VF01 or VF04.

● You create a debit memo by entering the debit memo request number in the transaction VF01.
● You create a credit memo by entering the credit memo request number in the transaction VF01.
● You can view the MM invoice in the transaction MIR4.
● You can also view the invoice at the Settlement Approval Queue by choosing the Document Flow
pushbutton.

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More Information

Revenue Recognition and Purchase Realization [page 251]

10.6 Provisional Settlements

Use

Provisional Settlements provide the ability to post the invoice document, with or without impacting the GR/IR
and Purchase Price Variance (PPV) accounts. The system treats the Provisional Settlements as an advance to
the vendor and only hits the accounts that are defined in the configuration, without posting to GR/IR or PPV. In
this case, only the final settlement is posted to GR/IR and PPV. Alternatively, the system can also be configured
to post to the GR/IR and PPV accounts, also in Provisional Settlements.

Integration

● All configurations for standard MM Invoice are maintained.

● All GL are configured against the Agency Business Document (ABD) condition types.

Prerequisites

● The way the Provisional Settlements are posting is controlled in the IMG step, “Activate GL Provisional
Settlement Postings”.
● The configuration indicates whether the Provisional Settlements areposting to either the general GL
accounts or the GR/IR and PPV accounts.
● Any open Settlements that exist should be closed and completed prior to changing the configuration.
● When posting to general GL accounts, a condition type to hold the previous settlement amount has to be
created and assigned to the pricing procedure of the settlement ABD.
● Existing GL/PO configuration also needs to be maintained. To do so, on the SAP Easy Access screen,
choose SAP Agricultural Contract Management Contract Settlement Settlement Document
Configure GL/PO Posting Settings .
● The following steps need to be performed to maintain the NEW configuration:
1. In IMG Customizing for Logistics - General under Global Trade Management Agricultural Contract
Management Contract Settlement General Settings Activate GL Provisional Settlement
Postings .
The Change View "View: Activate GL Provisional Settlement Postings": Overview screen appears.
2. Choose New Entries.
The New Entries: Details of Added Entries screen appears.

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 3. Enter the company code and set ACTIVE flag.
4. Save your entries.
● Result You have activated GL purchase provisional settlement for the company codes.

Features

● Provisional Settlements enable payment to vendors without affecting GR/IR and Purchase Price Variance
(PPV).
● The “Activate GL Provisional Settlement Postings” configuration provides the flexibility to define if the the
Provisional Settlement will post to GR/IR and PPV or only general GL accounts..
● It is only applicable for the following scenarios :
○ Purchase Side
○ Standard Settlements
○ Third Party
○ Intercompany

Activities

1. The steps for creating a Settlement Group, Settlement Unit, ABD, and MM invoice are the same. For more
information, see Maintenance of Settlement [page 226]
2. The MM invoice still gets generated in the background.
3. The UI display of the ABD (Condition Type and its amounts) and the way FI postings are done in the MM
invoice changes.

10.7 Revenue Recognition and Purchase Realization

Use

Once a contract quantity has been executed or canceled and settled, expenses or revenue related to the
quantity must be recognized in the financial accounts of the firm. SAP Agricultural Contract Management has
the ability to issue invoices prior to title transfer (title and risk of loss transfer), for example, processing sales
orders for goods sold and delivered with lengthy transit times. In these scenarios, revenue must be deferred
and associated expenses accrued for title transfer. Once title transfer occurs, revenue is recognized, along with
the cost of goods sold and the accrued expenses and service revenues.

In certain situations, invoices are issued before final price determination (including price, weight, or quality) or
title transfer takes place, for example, in the case of a contract commodity delivered with lengthy transit times
where governing weights or governing qualities are determined at the destination after arrival and unload. In
these scenarios, revenue must be deferred and associated expenses accrued until title transfer, final price,
governing weight, and governing qualities have occurred. Once all four events occur, revenue is recognized,

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along with cost of goods sold and accrued expenses. Costs include primary expenses (cost of goods sold from
goods issue) and any secondary expenses incurred in association with the sale and shipping of a product.

For process consistency, all revenue recognition processes will utilize ABDs in a consistent manner for all third
party and intercompany sales scenarios. The settlement event registry keeps track of all events that are
relevant for final settlement and revenue recognition in relation to application document items. The update of
the versioned logistics pricing table is automatically triggered for the respective application document. The
tables CM_VLOGP and CM_VLOGP_KONVD are automatically updated with a pricing redistribution before the
settlement for a canceled quantity is released. Settlement events are set by notifications that are sent from the
appropriate modules of the overall solution. The registry provides an API (application programming interface)
for these notifications.

Integration

The following areas are integrated with the revenue recognition area:

● Contract Application [page 167]

● Contract Settlement [page 213]
● Expense Management [page 129]
● Agency Billing Document
● Vendor Billing Document

Features

The following are some features of revenue recognition:

● Recognize sales with contract reference

● Recognize sale without reference to contract
● Recognize secondary expenses
● Purchase realization

For more information, see the documentation for the following features:

● Revenue Recognition and Purchase Realization Monitors [page 252]

● Revenue Recognition Processor [page 256]
● Purchase Realization Processor [page 255]

10.7.1 Revenue Recognition and Purchase Realization

Monitors

Use

The Revenue Recognition monitor is an SAP GUI ALV-based report that displays data and other related
documents from the event registry. The monitor only displays data and does not allow users to change records

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(manual changes to settlement event indicators are not allowed). A selection screen allows you to enter the
selection criteria to retrieve the records from the event registry. You can view all the application documents in
one place, and can easily check the status of each document so that you know what steps are pending before
revenue recognition takes place. You can also view the log after an application document has been processed,
and can check the document flow. With this report, you can navigate from the ALV to display transactions like
the trading contract, sales order, delivery document, application document, and settlement document.

Prerequisites

You have defined the fields that need to be maintained in the trading document in the Customizing activity
Maintain Settlement Events for Revenue Recognition.

Features

The Purchase Realization Monitor and the Sales Recognition Monitor enable the following:

● Recording, tracking, and reporting of settlement events

● Status processing, as follows:
○ Ready
Document is ready for revenue recognition.
○ Complete
Document was executed without any error.
○ Failed
Document was not executed due to errors.
○ Waiting
Document cannot be executed since some process is still pending.
○ Obsolete
The application document itself has been cancelled.

In addition, the Sales Recognition Monitor allows you to do the following:

● Use the adjustment type as search criteria to find the a specific trading document, as follows:
○ Settlement Adjustment
If a settlement document is adjusted after revenue recognition, this document reappears as a new
entry in the settlement event registry.
○ Expense Adjustment
If an expense document is approved or settled after revenue recognition, this appears as a new entry in
the settlement event registry.
○ Settlement and Expense Adjustment
If a settlement and expense adjustment takes place in a document, this appears as a new entry in the
settlement event registry.
● Display the log
● View the document flow
The Document Flow pushbutton allows the user to access current state of a document and view the
document flow screen with respect to all preceding and succeeding document. From this list, users can
display or navigate to the relevant documents.

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● Utilize Settlement Event indicators, as follows:
○ Title Transfer
After goods issue, the date of title transfer is determined and updated in the delivery document. For
destination sales, the document uses the estimated date of title transfer, unless this date is replaced
by a confirmed actual date of title transfer. The settlement event registry is notified with the date of
title transfer in conjunction with the final settlement. If a delivery confirmation is received from a
customer, then a notification to set the title transfer date can be sent to the settlement event registry.
○ Final Price
The final settlements with final prices update the event registry on approval.
○ Governing Weight
After the governing weight certificate is entered into the Q Repository, the governing weight certificate
becomes available. The system then triggers a notification at final settlement of the settlement event
registry that the governing weight is final.
○ Governing Qualities
When the governing quality certificate becomes available, the system triggers a notification at final
settlement of the settlement event registry that the governing quality is final. If there are multiple
governing quality characteristics, then this settlement event indicator is set after all governing quality
characteristics have been received.

Activities

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Revenue Recognition Revenue Recognition Monitor .
2. Choose either Purchase Realization Monitor or Sales Recognition Monitor (depending on whether it is a
purchase or sales scenario).
3. Enter the company code and other required fields to display the relevant trading document. You can view
all the details regarding the document.

4. Choose . You can view all the documents that have been created for this trading contract and their
statuses.
5. You can choose any document in the document flow to navigate to the particular document and view its
details.

 Note

If the trading contract has the status Ready, the revenue will be recognized for this contract. If the
document has any other status besides Ready, Complete, or Obsolete the document flow will show which
stage the trading contract is at. This helps you to know what steps need to take place to complete revenue
recognition or purchase realization for the document.

More Information

● Revenue Recognition Processor [page 256]

● Purchase Realization Processor [page 255]

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10.7.2 Purchase Realization Processor

Use

This processor evaluates the settlement event registry and initiates the purchase realization for all application
document items in which all the settlement event indicators are selected. After purchase realization,
application document quantity types are updated in the contract commodity line. If a third party exists, the
relevant goods movement indicator is also sent to them.

Features

In third party and intercompany purchase scenarios with contract reference purchases, revenue is realized
based on the same settlement event indicators as for revenue recognition in sales scenarios with contract
reference.

The Governing Weight and Governing Quality checkboxes are set during contract application, on the physical
receipt of the good. The Title Transfer checkbox is set based on incoterms on the contracts during contract
application. The Final Price checkbox is set during contract settlement. Purchase realization contains an
additional checkbox called the Physical Receipt of Goods.

A goods movement message with indicator 4 is sent to the third party on the physical receipt of the goods after
the realization of an application document. This helps the third party update their inventory with the
information that all transactions are complete.

Activities

To realize a purchase, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Revenue Recognition Revenue Recognition Processor
2. Choose Purchase Realization.

3. Enter the required details and choose .

The purchase realization monitor appears.
4. Choose a document which is in Ready status.
5. Choose the Realize Purchase pushbutton.
The status of the document changes to Complete.

To update the application document, proceed as follows:

1. Choose the completed document's Ref. Doc (Reference Document) field.

The application document is displayed.
2. In the Item Overview group box, choose the Items tab page.

3. Choose the line item and then choose .

The Item Details group box gets updated.

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4. In the Item Details group box, choose the Status tab page.
The Status Management group box appears. It displays the statuses and follow-on actions.

5. Choose to view the settlement status.

The Active Statuses group box displays that revenue recognition for that document is active. This indicates
that purchase has been realized for the particular document.

10.7.3 Revenue Recognition Processor

Use

The Revenue Recognition Processor evaluates the settlement event registry and initiates the revenue and
expense recognition for those delivery document items for which final settlement and billing has been
performed and where all settlement events have occurred.

For partial application, revenue recognition in a contract settlement scenario is based on separate ABDs. These
revenue recognition ABDs create the required reclassification postings in accounting, based on standard
account determination. Separate ABDs are created per settlement group. This allows the proper support of
foreign currency settlements, as each settlement group may have a different translation date (foreign
exchange rate key date).

Revenue recognition ABDs for provisional settlement groups only contain items that relate to settlement units
of the final settlement group that is being recognized. In this way, a provisional settlement group can trigger
several revenue recognition ABDs (a partial settlement scenario). This is also applicable for split application
scenarios, where there are multiple applications for a single delivery item. Each split application can be
recognized independently.

Integration

You have integrated the third party trading system, if relevant. For more information, see Possible Third Party
Integration [page 268]

Prerequisites

All relevant event registry indicators are set and the entry has the status Ready.

Features

● Determines readiness
Evaluates all settlement event indicators (title transfer, governing weight, governing quality, and final price)
based on configuration of these indicators.

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● Confirms proof of delivery
Initiates the required goods movement out of SIT cockpit if material stock is in outbound SIT.
● Recognizes revenue, primary expenses, and accrued expenses
Determines revenue recognition for all relevant documents of the selected event registry entry and creates
the corresponding ABD (Agency Billing Document) to recognize them.
● Recognizes secondary expenses (settled and accrued)
Determines all accrued and settled expenses relevant for the selected event registry entry and creates the
corresponding VBD (Vendor Billing Document) to recognize them.
● Updates the Quantity Type table
Updates the quantity type table for the contract commodity item.
● Provides a Goods Movement indicator
Sends this indicator to the third party, if relevant, and indicates the physical receipt of goods.

An additional feature of the revenue recognition processor is to recognize revenue without reference to a
contract. In such a case only a delivery document exists. Following are the features of revenue recognition
without reference to contract:

● There is no provisional settlement or billing.

● Governing weight and governing quality are always at origin.
● Prices are always final.
● Quantity, quality, or pricing adjustments are handled through credit and debit memos and the related
revenue is recognized immediately.

Activities

To recognize revenue, proceed as follows:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Revenue Recognition Revenue Recognition Processor .
2. Choose Revenue Recognition Processor.

3. Enter the required details and choose .

The revenue recognition monitor appears.
4. Choose a document which is in Ready status.
5. Choose the Recognize Revenue and Expenses pushbutton.
The status of the document changes to Complete.

To update the application document, proceed as follows:

1. Choose the completed document's Ref. Doc (Reference Document) field.

The application document is displayed.
2. In the Item Overview group box, choose the Items tab page.

3. Choose the line item and then choose .

The Item Details group box gets updated.
4. In the Item Details group box, choose the Status tab page.
The Status Management group box appears. It displays the statuses and follow-on actions.

5. Choose the to view the settlement status.

The Active Statuses group box displays that revenue recognition for that document is active. This indicates
that revenue has been recognized for the particular document.

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The following activities take place for a revenue recognition scenario without reference to contract:

● The delivery document notifies the Revenue Recognition Monitor to create a new registry entry.
● On creation of a new entry, the settlement event indicators for governing weight, governing quality, and
final price are set automatically.
● There are no references to application documents or settlement documents.
● There are no related VBDs representing secondary expenses.
● The third party trading system is not updated.

10.8 Storage Settlement

Use

Storage settlement refers to the process of settling 3rd party goods that are in storage at a plant.

Storage settlement is made up of the following types of settlements:

● Unload Based Storage Settlement: This type of settlement is a time based storage settlement. Only
application document items that are assigned to unload based storage agreements are settled. To run an
unload-based storage settlement you must define the run date. Only application documents that have a
storage start date earlier than the run date are settled. Application documents that have a storage end
date later or equal to the run date are assigned the Intermediately Storage Settled status after their storage
settlement is approved. Application documents that have a storage end date earlier than the run date are
assigned the Finally Storage Settled status. For unload based storage settlements, each settlement unit
represents a storage history period for an application document. These storage periods are created using
unload history logic.
● Inventory-Based Storage Settlement: Inventory based storage settlements are quantity based settlements.
Only application document items that are assigned to inventory based storage agreements are settled. To
run an inventory based storage settlement you must define a storage start and end date. For inventory
based storage settlements, each settlement unit represents an inventory quantity during a specific period
of time. This inventory quantity is made up of all application items that either started or ended their
storage periods between the storage start and end date. Also, these application document items are
selected and grouped by the following criteria:
○ Payer
○ Vendor
○ Plant
○ Storage Agreement
○ Storage Agreement Item
● Accrual Storage Settlement: This type of settlement is a sub type of the unload based storage settlement
and inventory based storage settlement. Accrual storage settlement allows you to recognize economic
events by matching revenues to expenses at the time the transaction occurs rather than when payment is
made (or received). This method allows current cash inflows and outflows to be combined with future
expected cash inflows and outflows and gives a more accurate picture of the current financial situation.

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You can only settle application documents that are assigned to storage agreements and have either of the
following storage settlement statuses:

● Ready for Storage Settlement

● Immediately Storage Settled

Once the application document is settled, the storage settlement status is set to either of the following
statuses:

● Intermediately Storage Settled

● Finally Storage Settled

For each storage settlement type, the system calculates the storage and event fees. You can configure daily,
weekly, monthly and annual fees as well as fixed fees.

Prerequisites

● You have configured the following Customizing activities in Customizing for Logistics - General under
Agency Business Basic Settings Define Price Determination Process
○ Define Access Sequences
○ Define Condition Types
○ Define Calculation Schema
○ Calculation Schema Determination
● You have configured the pricing schema used in the calculation of storage fees for storage settlement in
Customizing for Agricultural Contract Management under Contract Settlement Settlement Document
Define Storage Settlement Pricing Schema

 Note

If the Source and Target Currencies for the Settlement are different, then the FX functionality needs to be
used for negotiation. For more information, see FX Functionality in Storage Settlement [page 262]

More Information

For more information about storage settlement pricing, see Storage Fees [page 259].

10.8.1 Storage Fees

Use

Storage fees are specific pricing conditions assigned to storage agreements. Storage fees determine how
much is charged for storage. Storage fees also define the event fees assigned to specific application
documents. The following storage fee types are available:

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● Flat rate: A single rate calculated as (USD rate) * (Quantity) * (Day). For example, if the storage fee is
defined as 1 USD per LB per day, and a load of 100LBs is stored for 10 days, then the total storage fee is
$1000 USD.
● Tiered graduated scale for unload-based agreement: For unload-based agreements, all calculations are
applied for each single stored commingled application document, which represents a load (or part of a
load) in storage. By using a tiered graduated scale condition, you can define how much to charge for each
tier of days for a given quantity.
● Tiered graduated scale for volume-based agreement: For volume-based agreements (or inventory-based),
all calculations are applied to the sum of stored commingled application documents that are linked to the
same storage agreement. By using a tiered graduated scale condition, you can define how much to charge
for each material volume for a specific time period (in the example below, for each day).
● Events: Events are a special type of fee that are assigned directly to application documents. The amount
charged by events is defined within storage agreements. Events can be either a single-charge event (that
is, the event can only occur once for an application document), or a periodic event (the event can occur
more than once).

Example

Tiered Graduated Scale for Unload-Based Agreement

You receive two loads. The first load of 100LBs stays in storage for 150 days and the second load of 100LBs
stays in storage for 30 days.

Scales

Scale Unit of Measure Amount Period

0 Day 1.00 USD per LB

100 Day .50 USD per LB

200 Day .10 USD per LB

Process Events

What When Inventory

Load 1 March 1 +100LBs

Load 2 June 29 +100LBs

Settlement July 29

The following calculation is applied. (Note the tiered calculation.)

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 Calculation Totals

Load 1 Tier 1: 100 Days * 1.00 USD * 100 LBs = Total charge for this load: 12500 USD
10000 USD

Tier 1: 100 Days * 1.00 USD * 100 LBs =

10000 USD

Load 2 Tier 1: 30 Days * 1.00 USD * 100 LBs = Total charge for this load: 3000 USD
3000 USD

Settlement Total charge for both loads: 15500 USD

Tiered Graduated Scale for Volume-Based Agreement

You receive three loads. The first load consists of 100 LBs, the second load of 100 LBs and the third load of 800
LBs. The farmer then removes then 800 LBs from storage on January 25.

Scales

Scale Unit of Measure Amount Period

0 LB 1.00 USD per day

100 LB .50 USD per day

1000 LB .10 USD per day

Process Events

What When Inventory

Load 1 January 1 +100LBs

Load 2 January 10 +100LBs

Load 3 January 20 +800LBs

Loudout 1 January 25 -800LBs

Settlement January 30

The following calculation is applied. The calculation is split by aggregated inventory quantities and then applied
to the pricing table. The calculation shows that each period is defined by the total inventory and then run
through the tiered calculation procedure.

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 Events Totals

Period 1 From January 1 to January 10 Total charge for this period: 1000 USD

Inventory: 100LBs in stock

Tier 1: 100LBs * 1.00 USD * 10 days =

1000 USD

Period 2 From January 1 to January 20 Total charge for this period: 1500 USD

Inventory: 200LBs in stock

Tier 1: 100LBs * 1.00 USD * 10 days =

1000 USD

Tier 2: 100LBs * 0.50 USD * 10 days =

500 USD

Period 3 From January 20 to January 25 Total charge for this period: 1150 USD

Inventory: 1000LBs in stock

Tier 1: 100LBs * 1.00 USD * 5 days =

500 USD

Tier 2: 100LBs * 0.50 USD * 5 days =

250 USD

Tier 3: 800LBs * 0.10 USD * 5 days =

400 USD

Period 4 From January 25 to January 30 Total charge for this period: 1100 USD

Inventory: 900LBs in Stock

Tier 1: 100LBs * 1.00 USD * 5 days =

500 USD

Tier 2: 100LBs * 0.50 USD * 5 days =

250 USD

Tier 3: 700LBs * 0.10 USD * 5 days =

350 USD

Settlement Total charge for both loads: 4750 USD

10.8.2 FX in Storage Settlement

Use

This process is used to implement the FX functionality in Storage Settlement.

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Prerequisites

To implement the FX functionality in Storage Settlement, the following prerequisites need to be considered:

● The prerequisites for this process are the same as those required to execute a Storage scenario for
Contract Settlement. For more information, see Storage Settlement [page 258]
● The source and target currencies are different and the settlement is an international settlement.

Process

Target Currency not Given

If the target currency is not given initially, proceed as follows:

● When the Target Currency is not given on the selection screen, the Source Currency will be the Pricing
Currency of the Storage Contract, where pricing is maintained in MEK1.
● In this case, the Target Currency will be the Contract Currency.
● In the Group FX tab of Settlement Group and the FX tab of Settlement Unit corresponding Source and
Target Currencies will be shown.
● If both the Source and Target Currencies are different, the negotiated FX rate can be provided and re-
pricing can be done to recalculate the settlement amounts.

Target Currency is Given

If the Target Currency is given initially, proceed as follows:

● When the Target Currency is given on the selection screen, the Source Currency shall be the Pricing
Currency of Storage Contract, where the pricing is maintained in MEK1.
● In this case, the Target Currency shall be the currency given on the selection screen.
● This new target currency will flow in the Group FX tab of Settlement Group and FX tab of Settlement Unit.
The corresponding Source Currency and Target Currencywill be shown in the screen fields.
● If both the source and target currencies are different, the negotiated FX rate can be provided and re-pricing
can be done to recalculate the settlement amounts.

Previous Settlement Currency

● When the first Storage Settlement is created for a commingled Application doc, the settlement document
shall have a source and target currency.
● This target currency shall be the settlement currency in which the settlement shall be created.
● With each subsequent Storage Settlement that is created for the same commingled Application
Document, the target currency shall be the currency of the previously created settlement. This shall follow
for each subsequent settlements, for the same Application Document, irrespective of whether the target
currency is given in the selection after the first settlement or not. This will happen until we reverse the
settlement documents and start re-settlement of the same Application Document.
● After reversing all the settlements, if we provide a new target currency, all the subsequent settlements will
follow the same target currency.

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  Note

All the subsequent Storage Settlement documents follow the previous settlement currency until all the
previous settlement documents are reversed.

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11 Inventory True-Up

Use

The ability to track and capture inventory levels is an important function within a trading organization. In order
to accurately portray the commodity positions, inventory data for commodities must be available in third party
systems (3PT).

Inventory true-up synchronizes the stock levels in your system with third party (3PT) systems. The systems are
synchronized using goods movement messages. Contract-related goods movement messages are sent from
system to system in real time. All other non contract-related goods movement messages are sent in an
overnight batch update. The system retrieves the current stock positions for each plant/storage location and
material combination and sends this information on to the 3PT system

There are various events that trigger goods movement (GM) updates in the system, for example, contract
application, contract settlement, and inventory true-up reversal. When one of these events occurs in the
system, this information must be sent to the third party (3PT) system to ensure both system systems remain
synchronized. The GM information can be sent in real-time or in batch updates.

Real-time updates happen as and when they are triggered in your system. These updates are reflected on the
3PT's side immediately. The following are the events that trigger real-time updates:

● Provisional contract application

● Final application
● Provisional contract settlement
● Final settlement - Revenue recognition
● Contract application reversal
● Settlement reversal

Pricing lot distribution information is sent using a batch update, which you can configure to run at your desired
frequency.

Implementation Considerations

The ACCGO/SWITCH_3PT switch must be activated so that true-up messages can be sent to a third party
system.

Integration

SAP Process Integration is used to link the ERP system and 3PT system.

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More Information

Inventory True-Up [page 266]

Possible Third Party Integration [page 268]

Contract Settlement [page 213]

Commodity Pricing Engine [page 56]

11.1 Inventory True-Up

Prerequisites

● You have mapped the SAP Agricultural Contract Management plant and storage location combination to
the corresponding storage level in the third party trading system in Customizing for Agricultural Contract
Management under Setup for Master Data Map Plant/Storage Location to 3rd Party Storage Level
● You have implemented the Cross Reference ECC Storage Location with Third Party Storage Location BAdI in
Customizing for Agricultural Contract Management under Enhancements Using Business Add-Ins
Inventory True-Up Cross Referencing Storage Locations
● You have implemented the Calculate Unrestricted Quantity of Stock BAdI in Customizing for Agricultural
Contract Management under Enhancements Using Business Add-Ins Inventory True-Up
Maintenance of Stock
● You have implemented the Calculate Total True-Up Amount BAdI in Customizing for Agricultural Contract
Management under Enhancements Using Business Add-Ins Inventory True-Up Maintenance of True-
Up Amount

Context

Inventory true-up ensures that the inventory levels in your system are up to date and accurately reflected in a
3PT system.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Tools Inventory True-Up
Run

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2. Enter the material or plant details, or a combination of both, depending on what data you want to base your
inventory true-up run on.

3. Uncheck the Simulation checkbox and choose .

To simulate an inventory true-up run and view the messages that will be generated when you execute the
inventory true-up, you can leave the Simulation checkbox checked.

Results

The system generates the true-up messages and sends them to the 3rd party system. The messages contain
the following information:

● Plant details
● Storage location
● Material details
● True-up quantities
● UoM for quantities

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12 Possible Third Party Integration

Use

Agricultural commodity management may require sophisticated risk analytics, portfolio management, and
granular relationships with financial instruments. These requirements may be managed outside of the SAP
system.

To fulfill such requirements, SAP Agricultural Contract Management offers the functions that enable the
possibility of integration with a third party trading system (3PT).

Under the integrated system landscape, position related updates are sent between the 3PT and SAP ERP
(ERP) systems. The contract capture and changes are initiated in 3PT, and then sent to ERP via the messages.

Implementation Considerations

To integrate with a 3PT system, the relevant switch must be activated, so that messaging between the SAP
Agricultural Contract Management (in SAP ERP) and the 3PT is possible.

You can make this setting under the Customizing for Logistics - General Global Trade Management
Agricultural Contract Management Basic Settings Activate Switch for Systems Integration .

The following options are available:

● ECC Only Solution

This means that the system is not integrated with a third party trading system.
Activate the switch /ACCGO/SWITCH_ECC.
● 3rd Party Integration
This means that the system is integrated with a third party trading system.
Activate the switch /ACCGO/SWITCH_3PT.

 Caution

Once you have activated an option, it is not possible to change this Customizing setting.

Integration

SAP NetWeaver Process Integration (SAP PI) is used to link the SAP ERP system and a 3PT system.

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Constraints

Depending on the implementation of the SAP Agricultural Contract Management solution and a 3PT system to
be integrated, additional development as well as additional master data from SAP ERP, configuration or
transactional data and the like may be required. In addition, a 3PT system may impose further restrictions on
use of the solution, for example, limits on reference data to be used in contracts, limits on tolerance schedule
definition and so on.

These constraints are outside the scope of this solution and should be addressed as an implementation
consideration.

12.1 Third Party Integration using SAP PI

Use

For integrating a third party trading system (3PT) with SAP Agricultural Contract Management (in SAP ERP),
SAP NetWeaver Process Integration (SAP PI) is used.

Features

As an integration option, SAP Agricultural Contract Management can be integrated with a 3PT system for
additional functions such as risk analytics and portfolio management. In this scenario, contracts are captured
through the 3PT system. The 3PT system then sends the data for any new contracts, contract amendments, or
cancellations to SAP Agricultural Contract Management. In turn, SAP Agricultural Contract Management sends
certain information to the 3PT system.

This includes the following types of information:

● Reference data, such as discount premium quality schedules (DPQS), tolerance schedules, and optionality
categories
● Amendment and cancellation data
In addition, the data associated with contract creation and the Ready to Price indicator is sent to the 3PT
for the case of spot contract.
● Pricing consumption at certain goods movements or settlement events
● Goods movement information

More Information

● For more information on individual functions, see the followings:

○ Reference Data Transfer [page 270]
○ Amendments and Cancellations [page 270]

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 ○ De-pricing [page 272]
○ Goods Movement Messages [page 273]
● For more information on the PI Content that is supported as part of SAP Agricultural Contract
Management, see .

12.1.1 Reference Data Transfer

Use

If the third party integration is activated with SAP Agricultural Contract Management, capturing of commodity
contracts from the third party trading system (3PT) is supported.

This includes the capturing of information such as discount premium quality schedule (DPQS), tolerance
schedule, and so on.

The 3PT system conducts validations during contract capture, for example to ensure that a DPQS is valid for
the entered material, that the tolerance schedules are consistent and so on.

Features

Prior to its use in contracts in the 3PT system, reference data must be transferred from SAP Agricultural
Contract Management (in SAP ERP) to the 3PT.

The reference data includes:

● Governing Weight
● Governing Analysis
● DPQS Volume Schedule
● DPQS Value Schedule
● Tolerance Schedules

More Information

Contract Capture [page 43]

12.1.2 Amendments and Cancellations

Use

This section describes the amendment and cancellation process when a third party trading system (3PT) is
integrated with SAP Agricultural Contract Management.

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Prerequisites

● A third party trading system (3PT) is available and integrated with SAP Agricultural Contract Management
(in SAP ERP) using the SAP NetWeaver Process Integration (SAP PI).
● A trading contract (TC) is available in the 3PT.

Features

All contract amendments and cancellations are initiated in the 3PT system and sent to the corresponding
contract in the SAP ERP system.

If a cancellation or an amendment is initiated, the 3PT triggers a validation message to the ERP to ensure that
the requested change is permissible in the ERP side based on any potential logistics execution that have
already occurred.

If the requested change is approved by the ERP, the 3PT can proceed with the message to update the contract.

If it is not approved, the 3PT system displays the reason for rejection for user to make any necessary changes.

Example

The following table summarizes the steps that take place in a quantity reduction process:

Step 3PT PI ERP

1 Cancel the quantity by reducing the - -

contract quantity for delivery period

2 - Trigger a pre-cancellation validation -

message to ERP

3 - - Check if the quantity to be cancelled

is available for call-off and no pre-
payment exists for the quantity

● If the quantity is available, the

validation passes
● If not, the validation fails

4 - Send a notification message regard­ -

ing the validation to 3PT

5 Save the change, if the validation - -

passed

6 - Send a notification message to ERP -

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More Information

Cancellation [page 52]

12.1.3 De-pricing

Use

This section describes the de-pricing process when a third party trading system (3PT) is integrated with SAP
Agricultural Contract Management.

Using de-pricing function you can temporarily remove the pricing of a lot quantity and later re-price that same
lot with different values. Such price changes can occur at any point until final settlement because during final
settlement, the pricing lot is locked.

Prerequisites

● A third party trading system (3PT) is available and integrated with SAP Agricultural Contract Management
(in SAP ERP) using the SAP NetWeaver Process Integration (SAP PI).
● A trading contract (TC) is available in the 3PT.

Features

All de-pricing changes are initiated in the 3PT system and sent to the corresponding contract in the SAP ERP
system.

If a de-pricing is initiated, the 3PT triggers a validation message to the ERP to ensure that the requested
change is permissible in the ERP side based on any potential final settlement and price locking (manual or at
business unit level) that have already occurred.

If the requested change is approved by the ERP, the 3PT can proceed with the message to update the contract.

If it is not approved, the 3PT system displays the reason for rejection, so that the user can make any necessary
changes.

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Example

The following table summarizes the steps that take place in a de-pricing process:

Step 3PT PI ERP

1 De-price the quantity by removing - -

the price amount for a portion of one
pricing lot quantity

2 - Trigger a pre-cancellation validation -

message to ERP

3 - - Check if the relevant pricing lot has

already been used for final settle­
ment or locked

● If the pricing lot has been used

or locked, the validation fails
● If not, the validation passes

4 - Send a notification message regard­ -

ing the validation to 3PT

5 Save the change, if the validation - -

passed

6 - Send a notification message to ERP -

More Information

Commodity Pricing Engine [page 56]

12.1.4 Goods Movement Messages

Use

There are various events that trigger goods movement (GM) updates in the system, for example, contract
application, contract settlement, and inventory true-up reversal. When one of these events occurs in the
system, this information must be sent to the third party trading system (3PT) to ensure both ERP and 3PT
systems remain synchronized.

For this purpose, goods movement messages are used.

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Prerequisites

● You have maintained the mapping between the plant and storage location combination and the
corresponding storage level in the third party trading system in Customizing for Logistics - General
Global Trade Management Agricultural Contract Management Setup for Master Data Map Plant/
Storage Location to 3rd Party Storage Level .
● You have maintained the required master data settings in the Business Rule Framework plus.
● You have implemented the BAdI Cross Reference ECC Storage Location with 3PT Storage Location in
Customizing for Logistics - General Global Trade Management Agricultural Contract Management
Enhancements Using Business Add-Ins Inventory True-Up Cross referencing Storage Locations BAdI:
Cross Reference ECC Storage Location with 3PT Storage Location
● You have implemented the BAdI Calculate Unrestricted Quantity of Stock in Customizing for Logistics -
General Global Trade Management Agricultural Contract Management Enhancements Using Business
Add-Ins Inventory True-Up Maintenance of Stock BAdI: Calculate Unrestricted Quantity of Stock

 Note

The BAdI implementations above are optional.

Features

The GM information can be sent in real-time or in batch mode.

Real-time updates happen as and when they are triggered in the ERP system. These updates are reflected on
the 3PT side immediately.

The following are the events that trigger real-time updates:

● Provisional contract application

● Final application
● Provisional contract settlement
● Final settlement - Revenue recognition
● Contract application reversal
● Settlement reversal

The pricing lots received from the 3PT system can be distributed in the ERP system by scheduling the Pricing
Distribution Run program ( /ACCGO/PRC_BATCH_DISTRIBUTION) as a background job.

You can configure to run the background job at your desired frequency.

More Information

Inventory True-Up [page 266]

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13 Operations Information

Certain administrative activities are required for the proper functioning of SAP Agricultural Contract
Management. These are periodic activities that affect areas of data integration, data consistency, and system
performance. The following activities are specific to the solution:

● Archiving [page 275]

● Monitoring [page 276]
● Error Handling [page 276]
● Transport and Change Management [page 277]

13.1 Archiving

Use

This section pertains to the regular administrative task of archiving data from the transaction tables of SAP
Agricultural Contract Management.

Prerequisites

You have made the required settings for Archiving in Customizing under SAP Customizing Implementation
Guide Logistics-General Global Trade Management Agricultural Contract Management Enhancements
Using Business Add-Ins Archiving.

Features

SAP Agricultural Contract Management uses its own namespace (/ACCGO/) for storing application-specific
data.

● The standard archiving object WB2 has been enhanced for archiving of custom tables that have been
enhanced through WB21.
● The standard archiving object MM_EKKO & SD_VBAK has been enhanced for archiving of Purchase Order or
Sales Order relevant data.
● The standard archiving object SD_VBRK has been enhanced for archiving of billing documents.
● A new archiving object /ACCGO/APS has been created for archiving of Contract Application, Contract
Settlement, Load Data Capture, and Event Registry transactional data.

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13.2 Monitoring

Use

Monitoring is an essential task within SAP Agricultural Contract Management.

Features

For more information about standard monitoring tools, see http://help.sap.com SAP NetWeaver SAP
NetWeaver 7.3 Including Enhancement Package 1 Technical Operations for SAP NetWeaver English
Administration of Application Server ABAP Monitoring and Administration Tools for Application Server ABAP
Monitoring in the CCMS

13.3 Error Handling

Use

The standard error handling capabilities are provided with SAP Agricultural Contract Management.

When third party (3PT) integration is active, the error handling takes care of monitoring of messages between
SAP Enterprise Resource Planning (ERP), SAP Process Integration (PI), and 3PT systems.

Features

● A global unique identifier ( GLOBAL_UUID) ensures that all messages across SAP ERP, PI and 3PT system
are uniquely identified. A reference UUID ( REFERNCE_UUID) is filled in the response message
(asynchronous or synchronous) along with the global UUID of the request message.
The application log is enhanced for error messages in SAP ERP. You can access this application log using
the transaction /ACCGO/APPL_LOG_DISP. The error or success messages, which originate from any
application run or from interface message processing, are captured in this application log. This application
log displays the following information:
○ Message ID
○ Message Class
○ Message Number
○ Message Type
Indicates whether the error is either information or warning or error or abort or success message
○ Timestamp

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 ○ Message Text
○ Message details
For example, Unique ID, Interface Number or Name, Source, and Target Application or Module.
○ Key information-specific to the error
For example, Contract Number or Material ID and so on.
○ Scenario Quantity or UoM
● The standard monitoring tool (technical name: SXMB_MONI) is used for monitoring data. In addition to this,
a similar interface monitor (technical name: /ACCGO/INT_MONI) with enhanced functionality has been
created. This new tool enables you to retrigger erroneous messages and also outbound messages that are
waiting to be sent.
The interface monitor has the following features:
○ Enables retriggering of multiple outbound messages that are in error or waiting state.
○ Disables you from triggering messages that have been retriggered and processed successfully.
Once a message has been retriggered successfully, the status of the message changes to retriggered.
○ Displays asynchronous response for selected outbound messages.

13.4 Transport and Change Management

The standard procedures of SAP NetWeaver apply for transport and change management issues.

For more information, see the Technical Operations Manual for SAP NetWeaver on SAP Help Portal at http://
help.sap.com SAP NetWeaver SAP NetWeaver 7.3 Including Enhancement Package 1 Technical
Operations for SAP NetWeaver English Administration of Application Server ABAP Change and Transport
System.

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14 Country-Specific Features

The following section describes which country-specific functions are supported in SAP Agricultural Contract
Management. The documentation provides an overview of the business processes, the associated Customizing
activities, and transactions or reports available in the system.

The functions documented here are functions that are not otherwise covered by the generic SAP Agricultural
Contract Management. The solution provides these additional functions to enable you to meet your country-
specific requirements.

14.1 Brazil

14.1.1 Contract Capture and Maintenance

14.1.1.1 Material Usage

Use

Commodity contracts for Brazil-based company codes have an additional field for Material Usage. The material
usage is maintained using SAP standard material classification, and it is used for tax determination during the
contract settlement process.

Prerequisites

You have maintained your material master data.

Activities

During contract settlement, the system retrieves the material usage from the purchase order (PO). If the
material usage is not available on the PO, the system retrieves the material usage from the material master
data. The system uses the material usage to determine the correct Código Fiscal de Operações e Prestações

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(CFOP), which is then used to calculate the correct taxation. For example, Programa de Integração Social (PIS)
and Contribuição para Financiamento da Seguridade Social (COFINS) are calculated based on the material
usage information.

In a commodity contract, you can view the Material Usage on the Brazil tab page for a commodity item.

14.1.1.2 Royalties Agreement Classification

Use

In third party commodity purchases, which involve GMO (Genetically Modified Organism) products, you need
to verify whether the commodity vendor has a royalty agreement with the biotechnology vendor. Depending on
the type of the existing agreement, the company that receives the commodity will be responsible to pay a
percentage of royalties to the biotechnology vendor who is the patent owner.

During Contract Capture and Maintenance, you can set the GMO Relevancy and provide the vendor, the
agreement, description of the technology, and the percentage of royalties to be paid to the biotechnology
vendor. You can also set or change the values for royalties calculation while receiving the load in Load Data
Capture. Based on the Business Add-In (BAdI) implementation, the system then copies these values to the
financial document and the percentage of royalties will be calculated accordingly.

 Note

While creating an LDC Object, you can set or change the GMO Relevancy values only when the Unload
Eventis selected in the LDC General Information section. The Royalties information can be then maintained
under Royalties tab.

Prerequisites

● You have maintained the Customizing to set the royalties percentages in Customizing for Agricultural
Contract Management under Country-Specific Settings Brazil Royalties
● You have implemented and activated the provided Business Add-In (BAdI) for Royalties calculation at
Contract Settlement (Invoicing Process).

Activities

To classify a contract as Royalties agreement, you set the GMO Relevancy at the ACM contract header level or
during the Load Data Capture level.

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Contract Change .
Alternatively, you can execute transaction WB22.

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2. Enter a trading contract number, which has a Royalties Agreement, in the Trading Contract field and
choose Execute.
3. Select the GMO Relevancy check box.
4. Select the relevant biotechnology vendor from the Vendor field.
5. Select the specific agreement from the Royalties' Agreement field.
Based on the above selections and the values maintained in the Royalties Customizing, the values in the
Royalties Technology and Percentage fields get populated.

6. Choose .

14.1.2 Expense Management

14.1.2.1 Accruing Expenses

Use

To accrue a planned or unplanned expense, you post an agency business document (ABD) with the expense
details from the trading contract.

Prerequisites

● You have a trading contract.

● You have set the relevancy of billing types in Customizing for Agricultural Contract Management under
Country-Specific Settings Brazil Expense Management Set Relevancy of Billing Types for Brazilian
Expense Processes .
● You have mapped the sales area and ABD billing types in Customizing for Agricultural Contract
Management under Country-Specific Settings Brazil Expense Management Map Sales Area and
ABD Billing Type to Sales Billing Type .
● You have mapped the expense condition type to the material in Customizing for Agricultural Contract
Management under Country-Specific Settings Brazil Expense Management Map Expense
Condition Type to Material .

Procedure

Accruing a Planned Expense

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Management Display . Alternatively you can execute transaction WB23.

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2. Enter a trading contract number in the Trading Contract field and choose .

3. In the Planned Conditions table, select the planned expense and choose .
4. In the Overview of Expenses Documents for Previous Docs table, enter the missing information.

5. Choose .

Accruing an Unplanned Expense

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Management
Commodity Management Display . Alternatively you can execute transaction WB23.

2. Enter a trading contract number in the Trading Contract field and choose .
3. In the Overview of Expenses Documents for Previous Docs table, enter the necessary information.

4. Choose .

Result

You have accrued an expense and created an ABD that describes the expense ready to be settled.

More Information

Settling Expenses [page 281]

14.1.2.2 Settling Expenses

Prerequisites

● You have carried out the Accruing Expenses procedure and posted the accrual ABD.
● You have set the relevancy of billing types in Customizing for Agricultural Contract Management under
Country-Specific Settings Brazil Expense Management Set Relevancy of Billing Types for Brazilian
Expense Processes .
● You have mapped the sales area and ABD billing types in Customizing for Agricultural Contract
Management under Country-Specific Settings Brazil Expense Management Map Sales Area and
ABD Billing Type to Sales Billing Type .
● You have mapped the expense condition type to the material in Customizing for Agricultural Contract
Management under Country-Specific Settings Brazil Expense Management Map Expense
Condition Type to Material .

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Context

Once an expense is accrued, it must be settled. When you settle an expense, the system creates an invoice with
an incoming nota fiscal or a billing document with an outgoing nota fiscal.

Procedure

1. On the SAP Easy Access screen, choose Logistics Global Trade Management Trading Contract
Environment Trading Expense Workbench . Alternatively, you can execute the transaction WB2_EWB .

2. Enter the trading contract number in the Trading Contract field and choose .

3. Select the line with the expense that you want to settle and choose .

4. Select the line with the expense you want to settle and choose .
5. Select the expense in the Documents For Settlement table.

6. Choose

7. Choose

Results

You have settled the expense and created an invoice with an incoming nota fiscal or a billing document with an
outgoing nota fiscal.

 Note

When you settle a purchasing expense, the system creates an invoice with the status On-hold. To post the
attached nota fiscal, you must enter additional details (such as the nota fiscal number and type) to the
invoice before the nota fiscal can be posted.

14.1.2.3 Document Flow

Use

For Brazil, the system generates the invoice verification documents after expenses are settled, and adds them
to the standard document flow tree.

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Integration

The invoice added to the standard document flow tree is created in the background by the Material
Management component and the billing document is created by the Sales and Distribution component.

More Information

Document Flow [page 134]

14.1.3 Load Data Capture

14.1.3.1 Load Data Capture Workcenter

Use

The Load Data Capture (LDC) Workcenter is a repository where users can enter and update load information to
capture, on arrival, certain attributes of a purchased load. Users can configure the available settings to capture
inbound and outbound event data, determine material, perform various maintenance tasks for LDC objects,
and trigger the Orchestration Framework [page 156] to generate follow-on logistical documents. Fast entry
screens are provided for users to enter event data, weights and analysis details, transportation information,
and other general information.

In addition, for Brazilian customers, a tab page with country-specific fields is available. To avoid irrelevant data
fields appearing to companies located out of Brazil, the processes and data fields relevant for Brazil are
identified through the company code. When the output confirms that the process under execution is for a
Brazilian company code, additional (Brazil-specific) data fields are available for viewing on the LDC screen.

Integration

The nota fiscal (NF) is a legal document that accompanies all goods deliveries in Brazil. It serves as the delivery
note and as the invoice, against which the customer makes payment. In addition, it includes all tax-related
information, which is later required for financial reporting to the tax authorities.

Prerequisites

Before using the Load Data Capture Workcenter, you must configure your settings in Customizing for Load
Data Capture and the Orchestration Framework under SAP Agricultural Contract Management Load Data

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Capture . Here, you define, for example, the LDC event type, the analysis type, the application instruction, and
MoT-relevant attributes.

Features

The Load Data Capture Workcenter provides the following capabilities for Brazilian customers:

● Captures the commodity volume printed on incoming notas fiscais.

● Captures incoming nota fiscal numbers of the paper-based NF.
● Captures incoming NF total amounts.
● Captures freight invoice numbers for specific load.
● Captures tax ID and the external delivery notes for special operations.
● Displays the logistically adjusted quantity (LAQ) for deliveries from natural persons, which not have notas
fiscais. See Goods Receipt with Logistics Adjusted Quantity [page 286].
● Provides a customer-specific Business Add-In (BAdI) to allow users to determine whether a load is
acceptable or not, based on sustainability criteria.

Activities

On the Brazil tab, you can do the following when creating or changing an LDC object:

● Make settings for the Brazil-specific nota fiscal. You can indicate whether or not there is a nota fiscal that
can be used as a reference document, and enter (amongst other settings) the NF ID, amount, and volume.
● Make settings for , if relevant.
○ For triangular operation, see Triangular Operation [page 305].
○ For future delivery, see Future Delivery [page 303].
○ For commingled stock, see Commingled Stock Features [page 297]
● Indicate whether or not the vendor is a natural person.
● Split an LDC event into multiple child events for vendors with different notas fiscais. See Load Data
Capture: Split for Several Notas Fiscais [page 285].

On the Weights Details tab page, you can do the following when creating or changing an LDC object:

● If there is a valid nota fiscal, you have an option to select 04: Nota Fiscal as the certificate category.

To implement the BAdI for the sustainability request, navigate to the enhancement spot /ACCGO/CMN_ES_UIS
in the BAdI Builder, and create an enhancement implementation for LDC event business logic ( /ACCGO/
UIS_BADI_EVNT_BL)..

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14.1.3.2 Load Data Capture: Split for Several Notas Fiscais

Use

This function enables you to split Load Data Capture [page 145] unload events among several vendors in Brazil.
When processing an unload event, you can split the load among multiple vendors with different notas fiscais,
including vendors with the natural persons legal nature, who have no nota fiscal.

Split functionality for vendors with different notas fiscais is only available for load data capture objects with
application instructions 82: Brazil LDC Split.

When you split an LDC event, the “parent” event, the system creates one “child” LDC event for each vendor
added in the split screen. These child events are then processed individually in the standard way.

More Information

1. Load Data Capture Workcenter [page 283]

2. Splitting Events among Several Vendors in Brazil [page 285]

14.1.3.2.1 Splitting Events among Several Vendors in Brazil

To split an event among several vendors, who have different notas fiscais, including vendors of the Natural
Person legal nature, complete the following steps.

1. On the LDC screen, select or create the event for which you want to make the split.
The LDC object must be assigned application instructions 82: Brazil LDC split. If you are creating a new
object, note that the vendor field is not mandatory for objects with this application instruction.
2. On the Weight Details tab, maintain information regarding the total load of the shipment, such as the
shipment's Gross Weight.

3. Choose . The Split Events Weight dialog appears.

4. Choose to add a vendor and maintain the information about that vendor's share of the shipment. If the
vendor is a natural person, leave the Nota Fiscal ID field blank.

5. Choose to have the system to distribute the total gross weight proportionally based on the weights you
maintained for each split. Alternatively, you can click the Change checkbox to maintain the proportion for
an individual split manually.
6. The traffic light by the Split Weight line at the bottom of the dialog indicates whether the split has been
maintained correctly. The Split Weight and Unload Weight must be equal

7. Choose , then proceed with the normal LDC process.

8. When you release the LDC for which you created the split, considered the “parent” LDC, the system
automatically generates “child”LDCs for each vendor included in the split.
From this point on, the separate child LDCs continue on their own for further processing. For instance, you
will need to provide appropriate application instruction and contraction information for each child LDC and
release them individually.

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  Note

You can choose while reviewing an event in order to identify the child LDCs created by an earlier
split in the Generated LDC ID field. Also, when reviewing a child LDC, you can click the Go to Parent Split
button to navigate directly to the parent LDC from which the child was created.

14.1.3.3 Goods Receipt with Logistics Adjusted Quantity

Use

In the SAP Agricultural Contract Management solution, when a commodities shipment arrives, its contents are
weighed and analyzed, and this data is entered as part of the Load Data Capture procedure. Due to Brazilian
legal requirements, the quantity in the goods receipt document must match the nota fiscal invoice document
quantity instead of original NET scale quantity. For goods receipts from vendors with the natural person legal
nature, because no nota fiscal is provided, the system calculates the quantity for goods receipts from natural
persons based on the weight and grade data from the LDC and displays this quantity - the Logistics Adjusted
Quantity (LA Qty, LAQ) - on the LDC Brazil tab.

● LAQ calculation is supported for both planned and unplanned scenarios.

● Because vendors who are not natural persons provide notas fiscais, the LAQ calculation does not apply for
goods receipts from companies.
● For goods receipts from natural persons, you do not need to supply a nota fiscal.
● Specific details apply to goods receipt with LAQ for Future Delivery [page 303] and Triangular Operation
[page 305].

Activities

For goods receipts from natural persons, maintain the relevant details on the Weights Details and Analysis
Details tabs. The system automatically calculates the Logistics Adjusted Quantity, which appears in the Brazil
tab. The LAQ is calculated based on several external factors that affect the goods - like heat, moisture, foreign
materials, and so on.

The external factors are set up in DPQS. During LDC, the weights and grades needs to match with settings from
trading contract into DPQS in order to proceed to final application when the LAQ is calculated. In the event of a
mismatch, the hierarchy is checked to determine the application document status.

14.1.4 Brazil Workcenter

The Brazilian Workcenter is the central point from where users can use the Application and Settlement True-Up
and Triangular/Future Delivery Monitor features.

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For more information on each of these features, follow the links given below:

● Application and Settlement True-Up [page 287]

● Triangular Operation [page 305]
● Future Delivery [page 303]

14.1.4.1 Application and Settlement True-Up

Use

When ordering goods from a vendor, you may sometimes experience a difference in the volume you order and
the volume that actually arrives. When this happens, you can use Application True-Up to generate a return nota
fiscal and goods movement which adjusts the stock volumes in the system when what was received is less than
what was stated on the incoming nota fiscal. On the other hand, you can input a complimentary nota fiscal
reference when what was received is greater than the incoming nota fiscal quantities.

Similarly, you may also encounter differences in amounts. In Brazil, when the nota fiscal amount is greater than
the settlement amount, you can use Settlement True-Up to create a nota fiscal de retorno. Nota fiscal de
retorno is a document that states that you have paid more than you were supposed to, and now have credit
with your vendor. When the nota fiscal amount is less than the settlement amount, Settlement True-Up sets the
status of the settlement document to Waiting for Complementary NF. This indicates that you are waiting for a
nota fiscal complementar (an additional nota fiscal) from your vendor and you can pay at a later time.

Integration

The Application and Settlement True-Up component is integrated with the Contract Application and Contract
Settlement components.

The Contract Application component receives the nota fiscal volume and calculates the logistics adjusted
quantity (LAQ) based on the net volume captured by the Load Data Capture (LDC) component. After discount
premium quality schedule (DPQS) adjustments, the final LAQ quantity is applied to the trading contract. The
Contract Application component sends the nota fiscal volume and the LAQ volume to the Application and
Settlement True-Up component to process the volume difference.

The Contract Settlement component receives the total nota fiscal amount and calculates the final settlement
price. The Contract Settlement component also calculates the material net price based on the total nota fiscal
amount captured by the LDC component. The material price is the commodity price without taxes. The
Contract Settlement component sends the total nota fiscal amount and the settlement price to the Application
and Settlement True-Up to process the amount difference.

As a part of ACM-CM integration which is realized as of SAP Agricultural Contract Management 2.0, an
integration of risk exposure function with the Brazil-specific Application True-Up scenario has been enabled.
With this integration, returning or receiving quantities to the vendor, the exposures for stock and stock
correction are updated when the Application True-Up scenario is executed. For more information, see
Integration with IS-OIL and Commodity Management [page 56].

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Features

You use Application and Settlement True-Up to do the following:

● Search for application and settlement documents

● Process an application document for volume adjustments
● Process a settlement document for amount adjustments
● Reverse an application or settlement true-up document
● Reprocess a reversed application or settlement true-up document
● Link a manually created complimentary nota fiscal to an application or settlement true-up document
● Directly set application and settlement documents to Complete

You can also use the Application and Settlement True-Up to do the following:

● View the follow-on document list from an application or settlement true-up document
● View application document details
● View application true-up reference document details
● View reversed application true-up reference document details
● View settlement unit document details
● View settlement true-up reference document details
● View reversed settlement true-up reference document details

Example

As a customer, you have ordered goods from your vendor. The vendor issues the goods to you and creates a
nota fiscal, which contains the volume of the goods and the amount the goods cost. The nota fiscal is
dispatched to you along with the stock.

When the goods arrive, the nota fiscal volume, amount, and identification (ID) are registered in the LDC
component. The goods are weighed by informing gross and tare weight. The net weight is the commodity-
calculated weight from the gross weight minus the tare weight.

An application document is generated. You use this document to process the net weight and apply adjustments
based on the quality characteristics captured versus the contracted characteristics. The result of the
adjustments is the LAQ weight, which is applied to the trading contract.

If there is a difference between the vendor-issued details printed in the nota fiscal, and the details applied to
the contract (the goods you receive), then Application True-Up processes the volume differences by generating
subsequent adjustment documents.

The Contract Settlement component calculates the final price based on the application LAQ weight. The final
price may be different from the nota fiscal amount contained in the LDC component. Settlement True-Up
processes the amount differences by generating subsequent adjustment documents.

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14.1.4.2 Processing Application and Settlement True-Up
Documents

Use

Application True-Up is used to do quantity adjustments. Adjustments are needed when the nota fiscal volume
and the volume applied to the trading contract do not match. The nota fiscal volume can be higher or lower
than the applied volume. When the applied volume is higher than the nota fiscal volume the system sets the
application true-up status to Waiting for Complementary NF which means that the corresponding
complementary nota fiscal documents (purchase order, inbound delivery document, goods receipt, and
incoming invoice) must be created. When the applied volume is lower than the nota fiscal volume, the system
generates return nota fiscal and a goods movement decreasing the total material stock available.

You can also directly set application and settlement true-up documents to Completed if the adjustment has
already been manually created. This is only possible for the following statuses:

● Ready
● Failed
● Waiting Complementary NF

Prerequisites

● The settlement has been settled and the incoming nota fiscal has been posted.
● The application or settlement true-up document has the status Ready.

Procedure

Processing an Application True-Up Document

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter.

2. Select Application True-Up and choose .

3. Search for the application document you want to process.

4. Select the application document and choose . This will put the document in Waiting Complimentary NF
status in case the applied volume is greater than the nota fiscal volume. In case the applied volume is less
than the nota fiscal volume, a return nota fiscal is generated.
5. If a return nota fiscal is generated, it has to be posted to create the goods movement. For this, select the
line with Invoice On Hold status.

1. Choose button.
2. Double-click the Return nota fiscal line and post the document.
6. If the application true-up document is generated in Waiting Complimentary NF status, you can link the
manually generated incoming invoice.
1. Select the line with Waiting Complimentary NF status.

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 2. Click button.

3. Input the manually created incoming invoice number and fiscal year, and click on .

Processing a Settlement True-Up Document

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter.

2. Select Settlement True-Up and choose .

3. Search for the settlement document you want to process. Settlement True-Up will only have Ready status
after processing the corresponding Application True-Up.

4. Select the settlement true-up document and choose . This processes the settlement adjustments. If the
chosen document is at Reversed status, it will be set back to Waiting Application True Up if the
corresponding application true-up document is not at Completed status. Alternatively, it will be set back to
Ready status, if the corresponding application true-up is set to Completed status.
5. The settlement true-up adjustment is generated on hold. To be able to post the generated document you
will have to:
1. Select the line with Invoice On Hold status.

2. Choose button.
3. Double-click the adjustment document and post.

Setting an Application True-Up Document to Completed

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter.

2. Select Application True-Up and choose .

3. Search for the application true-up document you want to process.

4. Select the application true-up document, choose . This will set the status of all selected application
true-up to Completed.

Setting a Settlement True-Up Document to Completed

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter .

2. Select Settlement True-Up and choose .

3. Search for the settlement document you want to process.
4. Select the settlement true-up document, choose Set as Completed. This will set the status of all selected
settlement true-up to Completed.

Processing an Application True-Up Document for Complimentary NF in Future Delivery

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter.

2. Select Application True-Up and choose .

3. Search for the application document you want to process.

4. Select the application document and choose . This will put the document in Waiting Complimentary NF
status in case the applied volume is greater than nota fiscal volume.
5. If the application true-up document is generated in Waiting Complimentary NF status, you can link the
manually generated incoming invoice.
1. Select the line with Waiting Complimentary NF status.

2. Click button.

3. Input the manually created incoming invoice number and fiscal year, and click .

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6. If the application true-up document is generated in Waiting Complimentary NF status, you can use the
automatic option for linking complementary NF.
1. The screen for providing the delivery note for quantity left in the existing future invoice and the new
complimentary NF for excess quantity will appear.
2. After receiving delivery note and complimentary NF, the system generates one goods receipt (GR) with
a reference delivery note and the second one for additional quantity.

 Example

When the respective quantities are as follows, in case of linking the automatic complimentary, 2
GRs, one of 10 TO with the movement type 801 ( GR Adv. Inv. + Tax) and the other of 20 TO with the
movement type 101 ( GR goods receipt) along with an invoice for 20 TO, will be created.
○ Invoice Quantity: 100 TO
○ Applied Quantity: 120 TO
○ Nota Fiscal Quantity: 90 TO

14.1.4.3 Reversing Application and Settlement True-Ups

Use

You can undo adjustments made to an application or settlement document by using the reversal process. The
application reversal process, in terms of goods movement, reverses the exact amount as was created during
the application true-up process, while the settlement reversal process cancels the settlement true-up
document during settlement true-up processing.

Procedure

Reversing an Application True-Up

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter .

2. Select Application True-Up and choose .

3. Search for the application document for which you want to reverse the true-up.
4. Select the application true-up document and choose the Reverse True-Up button. This cancels the
incoming invoice and goods movement adjustment that was created during the application true-up
process.

Reversing a Settlement True-Up

1. On the SAP Easy Access screen, choose Brazil Brazil Workcenter .

2. Select Settlement True-Up and choose .

3. Search for the settlement document for which you want to reverse the true-up.
4. Select the settlement true-up document and choose the Reverse True-Up button. This cancels the
settlement true-up document that was created during settlement true-up processing.

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Note

The only application or settlement document that cannot be reversed is one that has the status Reversed. If
needed you can reprocess and reverse a true-up document again.

If you reverse an application or settlement true-up document that has not been processed, the status is
updated to Reversed, but no follow-on documents are generated.

14.1.5 Contract Settlement

Use

Contract settlements processing in Brazil is slightly different from standard settlement processing in core SAP
Agricultural Contract Management mainly due to incoming nota fiscal (NF) document in Purchase scenarios.
Nota fiscal is a paper invoice sent by the vendor, which needs to be settled. In Brazil, it is mandatory to have
this goods related information in fiscal books, even if there are scale differences which do not match the NF
data and scale data. Thus, it is mandatory that the settlement process generates a nota fiscal either with
information which arrived at the plant, detached on the NF document (for company scenario) or with the
information gathered from scale during the unload event (for natural person scenario). In company scenario,
the settlement net amount and the vendor invoice amount might be different in most of the cases, so the
Application and Settlement True-Up functionality might process them. After you approve a settlement group,
the system creates a nota fiscal using standard MM process. The main data to generate an incoming NF is
already available from previous documents, such as Load Data Capture, contract application, settlement
document, material and vendor master.

Features

This section explains the following procedures:

● Cancelling Nota Fiscal [page 292]

● Outgoing Nota Fiscal [page 293]
● Incoming Nota Fiscal [page 294]
● Returning Nota Fiscal [page 295]

14.1.5.1 Cancelling Nota Fiscal

Use

You use this procedure to cancel nota fiscal. This scenario takes place when the commodities have not left the
plant. Currently the settlement reversal generates a credit memo, and subsequently a Nota Fiscal must be
generated to cancel the original NF in this scenario. In the Brazil scenario, you must first reverse a settlement
document to cancel the nota fiscal.

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Procedure

In the Settlement Workcenter, complete the following steps:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Settlement Reversal.

3. Enter the required details and choose .

4. In the Settlement Units group box, choose the document.

5. Choose .
In the Reversal Settlement Groups group box, a new line item containing simulated the settlement groups
appear.
6. In the Settlement Group group box, choose the document.

7. Choose .
The selected groups are generated and a new settlement group ID and settlement unit ID is created.

In the Settlement Approval Queue, complete the following steps:

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .
2. Choose Settlement Approval Queue.

3. Enter the required details and choose .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose , then choose Approve.

For incoming scenarios, a credit memo is created in the Brazil Settlement Hold Invoice status. You can then
cancel the nota fiscal document in the MIRO transaction.

 Note

When the nota fiscal leaves the company, it cannot be canceled anymore. Therefore, the settlement
reversal for this scenario is not allowed. Instead, the process is treated as a return nota fiscal, even if no
physical transfer is actually made.

14.1.5.2 Outgoing Nota Fiscal

Use

In the sales scenario, a company is selling commodity items to a customer and needs to generate an outgoing
nota fiscal document to. This document is attached to the load, which will depart from the plant. In sales, you
use the billing due list in the transaction VF04 to create a billing document. Through this transaction all pending
billing documents (order-related and delivery-related) for billing are displayed for processing. They can be
processed either individually or collectively - if the determined criteria match. In the sales flow, after settlement
execution, an ABD is generated (Expenses Settlement). In this way, when you perform billing generation in the
transaction VF04. The invoice and consequently the outgoing nota fiscal document is created with the correct

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pricing calculation. Alternatively, you can use billing creation transaction VF01 to process delivery documents
individually and generate outgoing Nota Fiscal documents.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .
2. Choose Settlement Approval Queue.

3. Enter the required details and choose .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose , then choose Approve.

 Note

For Brazil outgoing scenario, if you chose Approve, the settlement document is ready for invoice. You then
create a billing document in transaction VF04. When the billing document is posted, an outgoing nota fiscal
document is created automatically.

More Information

Invoicing Settlements [page 248]

14.1.5.3 Incoming Nota Fiscal

Use

In the third party purchase scenario, there are two main purchase scenarios that can occur, namely buying
from a company and buying from a natural person. In the first case, a load from a company will arrive at the
plant with an incoming nota fiscal (NF) document. This document contains details about load price, weight, NF
ID and so on. In Brazil, it is mandatory to have this information in fiscal books, even if there are scale differences
between NF data and scale data. In the second scenario, a natural person arrives at the plant usually without an
NF document, or the NF document is not considered by the receiving company, or the NF ID is only used as a
reference document. In such a scenario, the weight considered is the one achieved by the scale. In the second
case, there is no legal NF document arriving in the plant since there is no company involved. Nevertheless there
is an invoice document, which is entered in the system and processed by the settlement.

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Features

The following fields are mandatory for incoming nota fiscal generation:

● Nota Fiscal ID (reference ID)

● Quantity (gross amount/adjusted)
● Price
● Nota Fiscal Type
● Taxes Amount and Tax Code
● Counterparty Data
● CFOP Determination
● Tax Jurisdiction Code

Activities

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Approval Queue .
2. Choose Settlement Approval Queue.

3. Enter the required details and .

4. In the Settlement Group group box, choose the settlement group line item.

5. Choose , then choose Approve.

 Note

For Brazil incoming scenario, if you chose Approve, the document goes into Brazil Settlement Hold Invoice
status. In such a case, an MM invoice document is created in the background in a Brazil Settlement Hold
Invoice status to allow nota fiscal input. You can then post the nota fiscal document in the MIRO
transaction. The settlement then goes to invoiced state.

More Information

● Invoicing Settlements [page 248]

● Revenue Recognition and Purchase Realization [page 251]

14.1.5.4 Returning Nota Fiscal

Use

This scenario occurs when a load that was bought or sold is to be returned to its vendor or customer,
correspondingly. In such scenarios SAP Agricultural Contract Management solution provides specific handling

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with Settlement Returns functionality, however, for Brazil, there is a return Nota Fiscal you must generate
during Credit Memo creation in this process.

Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Settlement Returns.

3. Enter the required details and choose .

4. In the Application group box, choose the document.

5. Choose .
In the Settlement Group group box, a simulated returns settlement group is created.

6. Choose .
A credit memo document is created in the Brazil Settlement Hold Invoice status, and thus you can return
the NF document in the MIRO transaction. The settlement document then goes to the returns settlement
state.

 Note

You then go to approve settlement and continue the settlement process. For more information, see
Approving or Rejecting Settlements [page 232]. Once you have created the invoice for the returns
settlement document you must recognize revenue.

More Information

● Invoicing Settlements [page 248]

● Revenue Recognition and Purchase Realization [page 251]

14.1.5.5 Viewing Brazil Data at Group and Unit Level

Use

You can view the settlement group and settlement unit details of Brazil in the settlement workcenter. You can
further view and compare the Brazil data in the Load Data Capture workcenter.

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Procedure

1. On the SAP Easy Access screen, choose Agricultural Contract Management Contract Settlement
Settlement Workcenter .
2. Choose Change Settlement.
3. In the Find By field, enter Settlement Group.

4. In the Group Data group box, enter a settlement group number and choose .
The settlement group details appear.
5. Choose the settlement group line item to view the settlement unit details.

6. To view the Brazil details, choose and then choose the Brazil tab page. You can do this for both the
settlement group and the settlement unit.

 Note

In the same way, you can also go to the Load Data Capture workcenter and check the Brazil details. On the
SAP Easy Access screen, choose Agricultural Contract Management Load Data Capture Maintain
LDC .

14.1.6 Special Operations

You can perform the following special operations in the Brazil Country-Specific area:

● Commingled Stock [page 297]

● Future Delivery [page 303]
● Triangular Operation [page 305]

14.1.6.1 Commingled Stock

This section describs the following topics:

● Commingled Stock Features [page 297]

● Commingled Stock Processes [page 298]
● Creating LDC Objects for Commingled Stock [page 300]
● Processing Commingled Stocks in Manual Application Workcenter [page 301]

14.1.6.1.1 Commingled Stock Features

Use

You use this function to handle commingled stock for Brazil.

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When the firm accepts a commodity from a vendor (owner) for storage at the firm's location, but does not
purchase it, the firm must keep a record of such commodity.

This kind of obligated quantity is called 'commingled stock', as it is stored in the same location as the firm's
own inventory and its quantity as well as grade and quality characteristics may become indistinguishable from
other inventory.

The firm must ensure that a commingled load that is stored on its site is available for retrieval by its owner at
the same or better quality as when it was delivered to the firm's site.

There may be a fee associated with the storage of the stock and the quantity may or may not be purchased by
the firm from the owner.

Using this function, you can keep track of movements associated with commingled loads and manage their
contracts.

Features

The following are the features that are specific for Brazil commingled stock:

● Create and search Load Data Capture (LDC) objects for Brazil commingled stock using the application
instruction 81 (Brazil Commingled) in Load Data Capture Workcenter
● Display the country-specific Brazil tab in LDC
● Display Commingled for the Special Operation field on the Brazil tab
● Incorporate the Brazil country-specific Nota Fiscal concept along with the vendor legal nature ( Company
or Natural Person) on the Brazil tab
● Enable user to set the goods receipt creation mode ( Automatic or Manual) in Customizing
● Purchase the commingled stock from storage in either single step or two steps by using the Commingled
node in Manual Application Workcenter (MAW)
● Process multiple Brazil commingled loads together by combining the corresponding items using the Group
Application feature in MAW
● Load out the stock from storage if the vendor (owner) decides not to sell the commodity

14.1.6.1.2 Commingled Stock Processes

Use

The commingled load information is captured in the same manner as other load data. This includes the capture
of Weights Details, Analysis Details and so on.

In addition, the load must be identified as commingled stock for Brazil by entering the application instruction
81 (Brazil Commingled). Once it is identified as such, a storage program can be assigned during the data
capture.

Subsequently, the load quantity is designated with a warehouse for storage, so that a goods receipt can be
issued to the owner.

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Prerequisites

The following Customizing settings are required to use the Brazil commingled stock features:

● You have maintained the goods receipt creation mode in Customizing for Logistics - General Global
Trade Management Agricultural Contract Management Country-Specific Settings Brazil Basic
Setting Special Operation LDC Automatic/Manual Goods Receipt (Using OF) Define Goods Receipt
Creation Mode .
● You have maintained the goods receipt (GR) search sequence in Customizing for Logistics - General
Global Trade Management Agricultural Contract Management Country-Specific Settings Brazil
Basic Setting Special Operation LDC Automatic/Manual Goods Receipt (Using OF) Define Search
Sequence for Automatic/Manual GR Creation .

 Note

This Customizing setting is required only if you want to use the automatic GR creation.

● You have maintained the movement types in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Country-Specific Settings Brazil Basic Setting
Special Operation Maintain Movement Types .
● You have maintained the storage locations in Customizing for Logistics - General Global Trade
Management Agricultural Contract Management Country-Specific Settings Brazil Basic Setting
Special Operation Maintain Storage Location for Commingled Stock .

Process

The processes for Brazil commingled stock scenario take place in Load Data Capture (LDC) Workcenter and
Manual Application Workcenter (MAW) as follows:

Load Data Capture Workcenter

You use the Load Data Capture (LDC) Workcenter to perform the following:

● Trigger the Brazil commingled stock scenario by creating an LDC object

For detailed procedure, see Creating LDC Objects for Commingled Stock [page 300].

Manual Application Workcenter

You use the Manual Application Workcenter (MAW) to perform the following:

● Purchase the commingled stock from the storage that triggers the application to the contract which is
entered as Ref. Contract (reference contract) in LDC
● Reverse the purchase of commingled stock from the storage
● Create the storage load out when the load is returned to its owner without purchasing

For step-by-step procedures, see Processing Commingled Stocks in Manual Application Workcenter [page
301].

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14.1.6.1.3 Creating LDC Objects for Commingled Stock

Use

You use this procedure to create Load Data Capture (LDC) objects for Brazil commingled loads in the LDC
Workcenter.

Prerequisites

● You are authorized to work in the Load Data Capture (LDC).

Procedure

The creation of LDC objects for Brazil commingled stock takes place as follows using the capabilities that are
provided by Load Data Capture Workcenter:

1. Captures the Application Instruction 81 (Brazil Commingled) .

2. Captures the LDC General Information.
3. Captures the Ref. Contract (reference contract) on the Brazil tab.
4. Optionally, captures the purchasing document on the Additional Details subscreen.
If this step is skipped, the corresponding purchase order is generated by Orchestration Framework when
the LDC object is created.
5. Generates a goods receipt (GR).
If the Vendor Legal Nature is Company, the GR creation can be either manual or automatic depending on
the Customizing setting, while it can only be manual if the Vendor Legal Nature is Natural Person.

Result

You have created an LDC object for Brazil commingled stock.

A goods receipt with corresponding movement type is created either automatically or manually based on the
relevant Customizing settings.

You can check all documents that have been created in background using the Recovery Report (transaction
code /ACCGO/OE_RECOVERY) in Orchestration Framework.

More Information

For more information about the Brazil country-specific features with LDC, see Load Data Capture Workcenter
[page 283].

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14.1.6.1.4 Processing Commingled Stocks in Manual
Application Workcenter

Use

Under this topic, a set of step-by-step procedures is provided. You use these procedures to process Brazil
commingled stocks in the Manual Application Workcenter (MAW).

Prerequisites

● You are authorized to work in the Manual Application Workcenter.

● You have maintained the required master data settings in the Business Rule Framework plus.

Procedure

Under this section, the following step-by-step procedures are provided. Where the procedures are no different
from the ones for the core Commingled Stock for SAP Agricultural Contract Management, the link to the
corresponding procedure topic is provided, while the Brazil country-specific procedures are explained in detail.

Application Document Search

For step-by-step procedure, see Displaying Application Documents [page 191].

Contract Application

For step-by-step procedure, see Assignment of Application Documents to Contract [page 192].

Purchase from Storage

The purchase of Brazil commingled stock from storage can be executed in either single step or two steps as
follows:

● Single Step
1. Select an item in the Application Document Details area in MAW and press the Purchase button.
The Commingled popup appears.
2. Enter both purchase volume data and Nota Fiscal data in the popup.
The following fields are displayed:
○ Purchase Volume
Change the volume as required.
○ Ref. Contract
○ Vendor
○ Enter Nota Fiscal ID (checkbox)

 Note

Mark this checkbox and choose to make the Nota Fiscal Data fields editable.

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 ○ Natural Person (checkbox)
This checkbox is inactive if the relevant vendor legal nature for the selected item is company.
○ Nota Fiscal Data
○ Nota Fiscal Invoice No
○ NF Weight
○ NF Total

3. Choose .
The purchase is completed with the status Finally Applied.

 Note

For the case of multiple items, symbolic return goods movements are triggered and a purchase
order, an inbound delivery and a goods receipt are created in background for the summarized
quantity of the multiple items that are included in the application group. Subsequently settlement
takes place based on the application group ID level and the included items are processed together.

 Example

Suppose the following Brazil commingled loads (items) are included in an application group:
○ Item 1 − 200 KG
○ Item 2 − 300 KG
○ Item 3 − 500 KG

The following are created for the application group with the summarized quantity of the above
items included:
○ Purchase Order − 1000 KG
○ Inbound Delivery − 1000 KG
○ Goods Receipt − 1000 KG

● Two Steps
1. Select an item and press the Purchase button.
The Commingled popup appears.
2. Enter only purchase volume data in the popup.

3. Choose .
The first step of purchase is completed with the status BR: Waiting for Invoice NF.

 Note

For the case of multiple items, symbolic return goods movements are triggered and a purchase
order is created in background for the summarized quantity of the multiple items that are included
in the application group.

4. Select the same item again at a later point in time and press the Enter Invoice NF button.
The Commingled popup appears.
5. Enter Nota Fiscal data in the popup.

6. Choose .
The second step of purchase is completed with the status Finally Applied.

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  Note

For the case of multiple items, an inbound delivery and a goods receipt are created in background
for the summarized quantity of the multiple items that are included in the application group.
Subsequently settlement takes place based on the application group ID level and the included
items are processed together.

Reverse of Purchase from Storage

For step-by-step procedure, see Reversing Assignment of Application Document to Contract [page 194].

Load Out from Storage

For step-by-step procedure, see Creating Storage Load Out [page 204].

More Information

For more information, see Commingled Loads [page 188] section and the associated individual topics that
describe the core Commingled Stock scenario for SAP Agricultural Contract Management.

14.1.6.2 Future Delivery

Use

This function is related to the purchase side and involves two parts, namely the customer and the vendor. In
this function, the invoice is sent first and the goods are delivered at a later date.

The customer buys commodities from the vendor. The vendor receives the request and sends an Invoice Nota
Fiscal in advance to the customer. If there is more than one delivery, when the vendor sends the commodities,
each delivery has a Delivery Nota Fiscal.

The customer receives one Invoice Nota Fiscal and one or more Delivery Notas Fiscais from the vendor, where
the total quantities from all the Delivery Notas Fiscais must be equal to the total amount in the Invoice Nota
Fiscal.

Prerequisites

● On the Invoice tab on the Purchase Order screen, you have selected only Invoice Receipt to set up Future
Delivery. This is a standard process.
● You have posted an invoice in advance in the MIRO transaction. This is a standard process.
● You have created an LDC. For more information, see Load Data Capture (LDC) Object [page 147].
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation LDC Automatic/Manual Goods
Receipt (Using OF) Define Goods Receipt Creation Mode . You use this Customizing activity if you want

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 Goods Receipts (GR) to be created automatically. If you do not customize GR as automatic, by default the
process will take place manually.
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation LDC Automatic/Manual Goods
Receipt (Using OF) Define Search Sequence for Automatic/Manual GR Creation . You must use this
Customizing activity, if Goods Receipt has been customized in the previous Customizing activity.
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation Maintain Movement Types .

Features

In Load Data Capture Workcenter

For Company

● In the Brazil tab, you must fill in the Delivery Nota Fiscal group box manually.
● The system already recognizes this nota fiscal as a Company.
● If Goods Receipt (GR) is customized as automatic, when you save and release the LDC, the GR gets posted
automatically. In this case, the Goods Receipt pushbutton is disabled on the Brazil tab.
● If the Goods Receipt is customized as manual, after you save and release the LDC, you must return to the
LDC, choose Edit, and then click the Goods Receipt pushbutton to post the GR.

For Natural Person

● Enter the necessary details in the Weights Details tab and Analysis Details tab to calculate the Logistics
Adjusted Quantity (LA Qty) automatically, which appears in the Brazil tab. The LA Qty is calculated based
on several external factors that affect the goods, like heat, moisture, foreign materials, and so on.
● The system already recognizes this nota fiscal as Natural Person.
● You do not select the Delivery Nota Fiscal Receipt, as a delivery note is not mandatory for a natural person.
● For Natural Person, Goods Receipt is always manual. It cannot be customized as automatic.
● After you save and release the LDC, you must return to the LDC, choose Edit, and then click the Goods
Receipt pushbutton to post the GR.
● When you return to the LDC screen from the MIGO transaction, all the details in the Delivery Nota Fiscal
group box will be filled in automatically. These details are picked up from the MIGO transaction itself.

For Natural Person Compare to Company

● On the Brazil tab, the system initially recognizes this nota fiscal as Natural Person.
● You then select Delivery Nota Fiscal Receipt and the Vendor Legal Nature changes to Natural person
compared to company.
● In this case, the system does not use the LA Qty for the Goods Receipt calculation. Therefore, the LA Qty
becomes zero after the user selects the Delivery Nota Fiscal Receipt.
● You must fill in the Delivery Nota Fiscal group box details manually.
● If Goods Receipt is customized as automatic, when you save and release the LDC, the GR gets posted
automatically. In this case, the Goods Receipt pushbutton is disabled in the Brazil tab.
● If the Goods Receipt is Customized as manual, after you save and release the LDC, you must return to the
LDC, choose Edit, and then click the Goods Receipt pushbutton to post the GR.

In Contract Settlement

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● Contract Settlement creates a settlement group if all deliveries have been in the system and the balance
between Nota Fiscal Invoice and Delivery Note is zero, or if the process was finalized in the Brazil
Workcenter. You can use the NF ID to create a settlement.
● For more information see, Creating Settlements [page 227].

In Brazil Workcenter

In the Brazil Workcenter, go to the Triangular/Future Delivery Monitor and check the balance of quantities
between Nota Fiscal Invoice and Delivery Note. You can then select Final, to indicate whether this delivery is
final or not. Selecting Final allows the system to create a settlement and also to lock the Nota Fiscal ID so that
no new LDCs are created.

 Note

As a part of ACM-CM integration which is realized as of SAP Agricultural Contract Management 2.0, an
integration of risk exposure function with the Brazil-specific Future Delivery scenario has been enabled.
With this integration, the relevant exposures (stock, application and contract) are updated when the Future
Delivery scenario is executed. For more information, see Integration with SAP Commodity Management
[page 56] and Exposure Management.

14.1.6.3 Triangular Operation

Use

This function is related to the purchase side and involves three parties, namely customer, vendor, and goods
supplier.

The customer orders commodities from the vendor and this vendor in turn asks a goods supplier to deliver this
commodity to the customer. The vendor sends an Invoice Nota Fiscal to the customer.

The goods supplier who delivers the commodities to the customer sends one or more Delivery Notes.

Prerequisites

● In the Invoice tab on the Purchase Order screen, you have selected only Invoice Receipt to set up Triangular
Operation. This is a standard process.
● You have posted the Invoice Nota Fiscal in advance in the MIRO transaction, manually. This is a standard
process.
● You have created a Load Data Capture (LDC). For more information, see Load Data Capture (LDC) Object
[page 147]
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation Definition for Triangular
Operation
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation LDC Automatic/Manual Goods

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 Receipt (Using OF) Define Goods Receipt Creation Mode . You use this Customizing activity if you want
Goods Receipt (GR) to be created automatically. If you do not Customize GR as automatic, by default the
process will take place manually.
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation LDC Automatic/Manual Goods
Receipt (Using OF) Define Search Sequence for Automatic/Manual GR Creation . You must use this
Customizing activity, if Goods Receipt has been Customized in the previous Customizing activity.
● You have configured the relevant Customizing settings under SAP Agricultural Contract Management
Country-Specific Settings Brazil Basic Setting Special Operation Maintain Movement Types

Features

In LDC

The details of the Invoice Nota fiscal group box are related to the Vendor Legal Nature. The Invoice Nota Fiscal
group box cannot be edited.

The details in the Invoice Nota Fiscal group box are already filled in. These details are picked up from the
invoice document posted by the user. The system recognizes the special operation type from the Purchase
Order.

The details of the Delivery Nota Fiscal group box and Natural Person group box is related to the Supplier Legal
Nature. The Delivery Nota fiscal details must be filled in manually. The Natural Person group box is filled in with
the Logistics Adjusted Quantity (LA Qty) only if the Supplier Legal Nature is Natural Person.

As there are three kinds of vendor/ supplier, namely Company, Natural Person, and Natural person compared
to company- there can be 6 different combinations of vendor and supplier. The table below shows the various
possible combinations:

Vendor Supplier

Natural Person Natural person compared to company

Natural Person Company

Natural Person Natural Person

Company Natural person compared to company

Company Company

Company Natural Person

You select the Delivery Nota Fiscal Receipt if the Supplier Legal Nature is Company or Natural Person compare
to company. You do not select the Delivery Nota Fiscal Receipt in case of Natural Person, as a delivery note is
not mandatory for a Natural Person.

When Supplier Legal Nature is Natural Person, Goods Receipt is always manual. It cannot be Customized as
automatic. For Company and for Natural person compared to company the Goods Receipt can be manual or
automatic depending on Customizing.

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In Contract Settlement

Contract Settlement creates a settlement group for many application documents, if all deliveries have been in
the system and the balance between Nota Fiscal Invoice and Delivery Note is zero, or if the process was
finalized in the Brazil Workcenter. You can use the NF ID to create a settlement.

As the user posted the invoice manually, contract settlement can avoid the creation of Invoice Nota Fiscal. The
system identifies the posted invoice to fill in the fields related to Invoice Nota Fiscal and also includes the
invoice document for the user to check the invoice data through document flow.

For more information see, Creating Settlements [page 227].

In Brazil Workcenter

Application/Settlement True-Up processes the volume and amount differences obtained during a load
processing related to a Commodity Contract. These quantities and amounts differences occur due to
discrepancies in the value entered in the Nota Fiscal document and the real quantities that arrive at the plant.

Go to the Triangular/Future Delivery Monitor and check the balance of quantities between Nota Fiscal Invoice
and Delivery Note. You can then select Final, to indicate whether this delivery is final or not. Selecting Final
allows to create settlement and also locks the Nota Fiscal ID so that no new LDCs can be created.

 Note

As a part of ACM-CM integration which is realized as of SAP Agricultural Contract Management 2.0, an
integration of risk exposure function with the Brazil-specific Triangular Operation scenario has been
enabled. With this integration, the relevant exposures (stock, application and contract) are updated when
the Triangular Operation scenario is executed. For more information, see Integration with SAP Commodity
Management [page 56] and Exposure Management.

SAP Agricultural Contract Management

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SAP Agricultural Contract Management

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