Regular Purchase Scenario with Exposures

System Access Information

This paragraph gives you the generic system access information needed to run this process.

System Landscape

System Landscape, this Process is built in

ZDC Client 400

Solution Components used in this Process

SAP Agricultural Contract Management

Commodity Pricing Engine

Treasury and Risk Management Logistics Integration

Exposure Management

Please check the currently valid system IDs and active clients on the tab strip SYSTEMS of this
process in the Demo Database.

Users

Predefined User Password Component

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Purpose

The regular purchase scenario also known as planned scenario uses purchase order that has been
previously called-off against the contract. Then the purchase order number and item number are used
to initiate Load Data Capture. Once Load Data Capture is saved, then outbound delivery, goods
movement and application documents are created automatically in the background. This exercise
intends to track the contract exposures updates along this end-to-end scenario.

Process flow
1. Capture Contract

2. Create Purchase Order and Call Off to Contract

3. Capture Loads

4. Fix the Price

5. Create, Release and Approve Settlement Document

6. Run Purchase realization

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 Capture Contract
Use
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. Furthermore, CPE (Commodity
Price Engine) is an important part of the solution.

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.

Note that contract capture and maintenance can also be done through a third party trading system.

Procedure
1. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Management 
Commodity Contract  Create

Transaction code WB21

2. Enter “GTP1” for the Contract Type and press Enter

3. Enter the following data:

Field Data

TEW Type Standard

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 Sales Organization 0001

Distribution Channel 01

Division 01

Purchasing Organization 0001

Purchasing Group 001

Plant 0001

4. Click on button - Copy

5. On Basic Data Tab enter the following:

Field Data and Explanation

Vendor <see Master Data table>

External Number For example: Contract_XXX (where XXX is your

number)

Number defined by user and used to identify a

trading contract. This number can be entered in
addition to the trading contract number that is
assigned internally and which cannot be changed
by the user. The number can also be used as a
search criterion for trading contracts

Incoterms Purch DDP – ACM supports 3 title transfers

(Destination, Intransit and Origin). It uses
Incoterms to determine title transfer.

6. Click on button - Overview in the menu bar.

7. On Item Overview Tab enter the following fields:

Field Data and Explanation

Material <see Master Data Table>

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 Quantity Ordered 200 and the according unit of measure from the
Master Data

Plant 0001

8. Click enter and then select the line and click - Display Item Details at the bottom

9. Select the Commodity Items tab

10. Click on - Create a new commodity item

11. Enter the following data:

Field Data and Explanation

Commodity Item Quantity 200

Date from Current date

Date to 31.05.2016

12. Press Enter.

13. Select Tolerances Tab enter the following fields:

Field Data and Explanation

Tolerance Schedule Id Tolerance schedule according to the material –

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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 Tolerance Type ID 03 at contract

This determines how tolerance schedule is

evaluated

• Per Delivery: Tolerance schedule rules

apply for the quantity applied to the contract
for a given load. If this type is selected in
the contract, an expected delivery quantity
must also be defined, against which the
actual load quantity can be evaluated.
• Per Delivery Period: Once the last load to
apply to the delivery period has been
identified, tolerance schedule rules shall be
evaluated against the quantity assigned to
the delivery period, even if there had been
multiple deliveries.
• Per Contract: Tolerance schedule rules
apply to all of the line items of a contract, for
the same commodity.

14. Select DPQS Tab enter the following fields:

Field Data and Explanation

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 Schedule Name DPQS value schedule according to the material
– 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
DPQS also specifies volume adjustments to be
applied based on quality characteristics such as
moisture content and foreign material content.
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).

Timing At Contract – Determines when DPQS is

evaluated.

Governing Wt Code ZDOW – Determines which weights are used

for final settlement.
In this case, destination official weights must be
received before final settlement can occur.

Governing Analysis ZDOA - Determines which analysis are used for

final settlement.
In this case, destination official analysis must
be received before final settlement can occur.

Schdl at Unload Loc The option to use a default DPQS schedule at

time of receipt is available as well versus
putting schedule in contract.

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 15. Press Enter and the Characteristics and Range Details should appear below

16. Select Valuation DataTab

17. Select Additional Contract Conditions Tab and enter “Any Optionality” for the Optionality
Type

18. Enter the following data in the “Additional Optionality Values” area:

Field Data and Explanation

Optionality Category ID Mode of Transport

Value Type MOT

Option Value 02 (Rail)

Pre/Disc Type Flat Premium

Pre/Disc Value 150

Pre/Disc Curr USD

19. Select Valuation Data Tab

20. On ACM Additional Information enter the following field:

Field Data and Explanation

Valuation Point <see Master Data Table>

21. Click button - Save and you should come back to the Header Data View.

22. Take note of the just created Contract number in order to follow the next process steps:
__________________________________________

23. Go to transaction WB22 using the field in the top left. The “Trading Contract Change”
window opens and your external number and the contract number should be already
entered.

24. Select -Search.

25. Go to the “Approval” tab and check the “Approval Indicator” box and your name and the
current date should appear below.

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 The associate responsible for processing a specific trading contract. You can configure your
system so that the logon user is defaulted as the responsible associate. This setting is made
in the settings for the trading contract type.

26. Click button - Save

27. Press button - Back to return to the SAP Easy Access Menu.

28. Check the exposures position report. (Refer to the Exposure Position Report Document)

Create Purchase Order and Call Off to Contract

...

29. Call up the transaction as follows:

System Menu Path SAP Easy Access  Logistics  Materials

Management  Purchasing  Purchase Order
Create  Vendor/Supplying Plant Known

Transaction Code ME21N

30. In the top of the screen enter the following:

Field Data

PO Type NB Standard PO

Vendor See Master Data table

31. Click on and enter the following data:

Field Data

Purch Org 0001

Purch Group 001

Company Code 0001

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32. On and enter the following data:

Field Data

Material See Master Data table

PO Quantity 100

UOM See Material Master at MM03 transaction

Plant 0001

33. Press Enter and click on and enter the following data:

34. Select Invoice Tab at item detail and enter the following fields:

Field Data

Tax code V0 (See material/vendor info record)

35. Select Delivery Tab and check if the data is already automatically entered:

Field Data

Incoterms DDP

36. Select Call-Off tab enter the following fields:

Field Data and Explanation

Pricing TC Enter all your trading contracts and line item

created previously

37. Press Enter and the line should automatically be filled with additional data.

Field Data

Incoterms DDP

38. Select Call Off tab enter the following fields:

Field Data and Explanation

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 Pricing TC Enter all your trading contracts and line item
created previously

39. Now Enter:

Field Data and Explanation

Quantity Total quantity for each contract (100) - it will

consume the quantities from contract

40. OPTIONAL – Repeat Step 35 and 36. Multiple contracts can be called off per PO line item.

41. Select Confirmations Tab and check the data is set as the following:

Field Data and Explanation

Confirmation control 0004 Inbound Delivery check at Confirmations

tab this assignment

42. Click button - Save and in case any yellow warnings appear you can confirm it.
43. Take note of the just created PO number:

__________________________________________

44. Enter ME23N to refresh PO and verify that call off status is complete

45. Press button - Back to return to the SAP Easy Access Menu.

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 Capture Loads
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
(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.

Procedure
46. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Load Data Capture  Maintain
LDC

Transaction code /ACCGO/UIS_WC

47. Double click “Create LDC Object” on the left side

48. Enter the following and enter:

Field Data

Purchase order and line item Your PO and line item

49. Press Enter and some fields should be retrieved automatically

50. Enter the following:

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 Field Data

LDC type Incoming

Event Unload

Mode of transport 01

Event location 0001

Storage location See Master Data table

Material See Master Data table

Vendor See Master Data table

51. Click button

52. Double click in the LDC ID-field

53. Select Weight Details Tab and enter the following:

Field Data

Certification category 01

UoM See Material Master at MM03 transaction

Gross weight 40

54. Select Analysis Details Tab and enter the following:

Field Data

Certification category 01

Analysis type 01

55. In case the Characteristics are not retrieved from the Master data please perform the following
steps:

1. Click on - Add Characteristics

2. Click on to select all Characteristcs

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 3. Click - OK

56. Enter the following for every line item:

Field Data

Characteristic Value1 Characteristic value (e.g.10)

Characteristic Value 2 Characteristic value (e.g.2)

57. Press Enter and check if all status-fields turn green - Succes

58. Click button - Save.

59. Select - Back

60. Note down the LDC ID for further reference: _____________

61. Select line and press - Select for Release

The status should turn into Released

62. Click button - Save

The status should turn into OF Excecution Successful

63. Select the line and press - Recovery Report to display Orchestration Framework Recovery
Report.

64. Select the line and press - Document Flow to display the document flow of the automatic
document creation. You can note down the numbers of the reference document for further
references.

65. Select - Exit to return to the SAP Easy Access Menu.

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 Fix the Price
Use

Price fixing is an agreement between the parts that future price is established. Before a price is fixed,
the system will use the floating price from the Commodity Price Engine (CPE). All the components of
the price should be entered in order to have the final price.

Procedure

66. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Management 
Commodity Contract  Change

Transaction code WB22

67. Enter the following data:

Field Data

Trading Contract Provide the contract number you created in

the process step capture contract.

68. Press <ENTER>

69. Click on button

70. Double click at Item Number.

71. Under Conditions (Purch.) tab enter the following:

72. Click on button

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 Field Data and Explanation

Pricing Quantity Enter the total quantity of your created

contract created in the process step capture
contract

Amount Enter the amount

Price unit Enter pricing unit (per Unit of Measure)

73. Click on button

74. Click button - Save.

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 Create, Release and Approve the Settlement Document
Use
The final settlement can occur once all pricing conditions for pricing aspect are complete or filled.
During final settlement, the total settlement amount will be calculated minus any previous provisional
settlements.

Procedure
75. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Settlement 
Settlement Workcenter

Transaction code /ACCGO/CAS_STL_WC

76. Double click on Create Settlement.

77. Enter the following data:

Field Data

Application Document Enter your application document numbers

78. Press - Execute

79. Select line item(s) and - Propose Groups

80. In the “Settlement Group” window select line item(s) and to generate Settlement Unit(s)
81. Double click on Change Settlement

82. Press - Execute

83. Select line item(s) and - Release

84. For Reason Code select “All OK”

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85. Press - Ok

86. Select to exit transaction

87. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Settlement 
Settlement Approval Queue

Transaction code /ACCGO/CAS_STL_APQ

88. Double click on Settlement Approval Queue

89. Enter the following data:

Field Data

Settlement Document Enter your settlement document numbers

90. Press - Execute

91. Select line item(s) and - Approve

92. Select each settlement group and icon to view details. Select the tabs to see view details
available for viewing.

93. Select each settlement unit and icon to view details.

94. Select each tab to view details on premiums and discounts for DPQS, Tolerance, Pricing,
Optionality and Expenses passed on to counterparty.

Notice in the pricing tab that the settlement unit should have the price from the contract. The
gross amount is the calculation in total and the net amount is the gross less any previous
provisional settlements.

95. Select to return to display of settlement group

96. Call up the transaction as follows:

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 System Menu Path SAP Easy Access  Agricultural Contract
Management  Contract Application  Manual
Application Workcenter

Transaction code /ACCGO/MWC

97. Double click Contract Application in the “Application Workcenter” window

98. Enter the following data:

Field Data

LDC Object ID Your LDC object ids

99. Press - Execute

100. Select application line item and document flow icon .

View the Agency Billing Document and subsequent debit or credit Invoice documents. Notice
that the ABD document is not posted as it is used a means for calcuation of settlement. The
posting is done through the invoice document. Also note that the invoice consolidates the loads
into one line item as this is driven by the purchase order which also is consolidated into one line
item.

101. Press Exit to return to the SAP Easy Access Menu.

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 Run Purchase Realization
102. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Settlement 
Revenue Recognition  Revenue Recognition
Processor

Transaction Code /ACCGO/RRP

103. Double click Purchase Realization for procurement or Revenue Recognition Processor if
sales

104. Enter the following and execute:

Field Data

Purchase Order Your PO number

105. Verify status is ready

106. Select line item and

107. Verify status is complete

108. Call up the transaction as follows:

System Menu Path SAP Easy Access  Agricultural Contract

Management  Contract Management 
Commodity Contract  Display

Transaction code WB23

109. Enter the following data:

Field Data

Trading Contract Your trading contract

110. Click on button - Overview in the menu bar.

111. Double click on line item

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112. Select commodity items tab

113. Select line item and - Show Quantity Types to view an overview of the quantity
types for contract. The revenue recognzied quantity should be populated as a result of
the purchase realization activity.

114. Return to SAP Easy Menu

nte

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