DEMO SCRIPT

CLASSIFICATION: INTERNAL & PARTNERS

SAP ACM: Agricultural Commodity Purchase
Scenario
SCENARIO ID: 9311

General Information  Agricultural Industry

 SAP Agricultural Contract Management
 Purchase Contract Capture and Execution
 Global

Authors  I002703
 I804730
 D057721

Date Last Updated  January 27, 2014

1
TABLE OF CONTENTS
1. Demo Script Overview ......................................................................................................................... 3
1.1. Demo Description ....................................................................................................................................................... 3
1.2. Business Pain Points ................................................................................................................................................. 3
1.3. Key Messages and Value Proposition ....................................................................................................................... 3
1.4. Storyflow Summary .................................................................................................................................................... 3
2. Technical Requirements ...................................................................................................................... 4
2.1. System Access Information........................................................................................................................................ 4
2.1.1. SAP Demo Cloud Showroom ..................................................................................................................................... 4
2.1.2. Predefined Demo User............................................................................................................................................... 4
2.1.3. Translation & Localization .......................................................................................................................................... 4
2.1.4. Data ............................................................................................................................................................................ 4
2.1.5. Prerequisites .............................................................................................................................................................. 5
3. DEMO Script................................................................................................................................................. 6
3.1. Story Flow .................................................................................................................................................................. 6
3.2. Step-By Step Guide ................................................................................................................................................... 7
4. Appendix .................................................................................................................................................... 30
4.1 How to Reset the Demo ........................................................................................................................................... 30

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1. DEMO SCRIPT OVERVIEW

1.1. DEMO DESCRIPTION

In this demo, the user will execute a scenario to purchase an agricultural commodity. The scenario begins with
capturing a purchase contract, including related contract terms, continues through logistics execution, and ends with
settlement of the purchased quantity.
The solution demonstrates extensions to standard contract capture that are required for agricultural commodity
companies, as well as flexibility in execution, with respect to pricing, document generation, and settlement.

1.2. BUSINESS PAIN POINTS

Agricultural commodity industry pain points include:
 A lack of infrastructure to capture commodity-specific contract terms for quality, optionalities, and tolerances
 System-enforcement of entering pricing before logistics execution can start
 Inability to change assignment of loads without significant and time-consuming document reversals
 Time-consuming manual generation of system documents
 Inability to generate consolidated settlement with a trade counterpart, including for trade-related expenses

1.3. KEY MESSAGES AND VALUE PROPOSITION

This scenario demonstrates SAP ACM features that enable:
 Capture of agricultural commodity-specific contract terms for quality, optionalities, and tolerances
 Flexible price entry, in terms of timing and components
 Automated generation of system documents
 Settlement of the adjusted quantity based on the commodity price and premiums and discounts

1.4. STORYFLOW SUMMARY

An agricultural commodity trading company is experiencing price and availability volatility. The Head of Commodity
Trading reviews the company’s position in wheat and determines that it is short. She must acquire wheat to ensure
that her delivery/production commitments can be met. She initiates a wheat purchase, including the following:

 Contracting with a vendor to supply wheat to compensate for the short position.
 Capturing details of the wheat quality, quantity and other information, when the wheat is delivered.
 Initiating payment for the wheat based on established pricing and premiums and discounts based on the delivered
quality.

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2. TECHNICAL REQUIREMENTS

2.1. SYSTEM ACCESS INFORMATION

2.1.1. SAP Demo Cloud Showroom

Open the Demo Store with https://www.sapdemostore.com

Enter Demo Scenario ID: nnnn and find this scenario.
Once you have accessed the cloud, you will find this SAP ACM demo scenario in:
Showroom = Green Phoenix / CSA

2.1.2. Predefined Demo User

Demo User Password System Client UI Parameter Port

NWBC
ACMDEMO welcome EC8 780
Web-based

2.1.3. Translation & Localization

If translation is available then the screens display is the languages available as indicated below. If localization is
available then regional data sets are available in the Data Section.

English  Portuguese
German Japanese
French Simplified Chinese
Spanish
Russian

2.1.4. Data

Data Type Data Value

Company Code 3000

Sales Organization 3000

Distribution Channel 01

Division A3

Purchasing Organization 3000

Purchasing Group 001

Plant 3001

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 Vendor 90000

Customer 80000

Material W100610000 (Wheat Dark Northern Spring)

2.1.5. Prerequisites

This section contains any steps that must be done prior to doing your demo. If there isn’t anything here then you can
proceed to the next section.

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3. DEMO SCRIPT
3.1. STORY FLOW
ABC Industries, a leading agricultural commodity trading company, is experiencing price and availability volatility.
Lucy Jones, the Head of Commodity Trading at ABC Industries, has reviewed the company’s position in wheat and
has determined that it is short. She must acquire wheat to ensure that the company’s delivery/production
commitments can be met.

She contracts with a supplier to supply additional wheat to compensate for the short position. The supplier delivers
the wheat and as each load arrives, Paul Brown, the Head of Operations, ensures that quality and weight details are
captured and analyzed. Based on the results, system documents are generated, and the loads are assigned to the
contract with the supplier.

Once the loads have been assigned to the supplier’s contract, John Whitman, the CFO, can trigger settlement
calculations with the counterpart, based on the commodity price and on premiums and discounts agreed as part of the
contract terms. He can also ensure that expenses related to the loads are allocated to the trade and ensure that a
consolidated settlement is generated. The calculated amount flows to FI to be paid.

Lucy reviews the company’s position in wheat and finds that the position is no longer short. There is sufficient stock
to cover production and deliveries.

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The demo scenario will be guided through several steps/sub-steps. The first and last (Acts 1 and 5) are not part of
the demo but would be part of a customer-specific report. For the demo, these steps can be referred to as Position
Monitoring.

Act 1: Position Monitoring: A commodity trader monitors the company’s position for wheat in a particular location and
time frame, using the company’s own reporting tools. The trader notices that the company’s position is “short”,
meaning they need to acquire more wheat to meet their processing and delivery commitments.

Act 2: Contract Capture: The trader contracts with a vendor to supply additional wheat to compensate for the short
position. She captures the required quality characteristics and their discounts and premiums, as well as other
contract terms for this quantity.

Act 3: Logistics Execution: The vendor delivers a load of wheat to the company. When the load arrives, the logistics
team captures the weight and quality details of the load.

Act 4: Financials: The load details, including expenses, are consolidated into a single settlement for the quantity. The
accounting team reviews the results to ensure that all of the relevant premiums and discounts are included. They
approve the proposed settlement and forward the information for payment.

Act 5: Position Monitoring: The trader monitors the company’s position for wheat in the same location and time frame,
using the company’s own reporting tools. The trader notices that the company’s position is no longer short and they
can now meet their wheat commitments.

3.2. STEP-BY STEP GUIDE

Please refer to section 4.1 for steps to reset this demo

Step 1/Act 1, Position Monitoring, is executed through a customer’s own reporting and tools and is not included in the
demo. The demo proceeds with Act 2, Contract Capture.

Step 2.0 - Act 2: Contract Capture

What to say

Commodity contracts (also known as “trading contracts”) are the basis for all traded agricultural commodity
purchases and sales. These contracts will specify the current or future pricing of the sale or purchase, delivery
or shipment terms, payment terms, and terms that govern the (potential) physical “logistics execution” of the
contract.

In this step, the trader, Lucy, contracts with a supplier to supply additional wheat to compensate for the short
position. She decides to add a quality requirement that the moisture percentage of the wheat must be within a
certain range to be acceptable and within the range, a premium or discount may apply to the delivered wheat.
Other contract terms are established as follows:
 The transfer of the title of ownership of the inventory will be when the load(s) reach their destination.
 The weights and analysis sampling of the loads at destination will be used for final settlement. Both
samplings should be officially certified. The quality characteristics relevant for this scenario are
Moisture percentage and Foreign Material percentage. A quality schedule with these characteristics will
be assigned to the contract. During execution, various versions of weight and quality data could be
captured and stored with the load details. Configuration, as well as contract terms, determine which
version of the weight and quality data is used for settlement (in this example the certified values at
destination shall be used).
 Lucy and the supplier have agreed to establish partial pricing for a specified quantity and the remaining
pricing will be established later. With SAP ACM, pricing is not required to be established prior to the
start of logistics execution. In addition, pricing can be established in components, such as a futures

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 component and a basis component, when only part of the overall price is known at a particular point in
time.
 Once all loads have been delivered against the contract, the total quantity delivered will be evaluated
against the total contract quantity for tolerance. The tolerance will allow 10% overfill and under-fill
where the pricing will be based on the last lot priced. Tolerance schedules may be assigned to
contracts to allow for over- or under-fills and to define the pricing that should be applied to over- or
under-filled quantities.
 An expense for drying charges will be incurred. Based on configuration, the expense that we enter here
will generate an accrual of the expense amount at the time of Goods Receipt. The expense will not
have any impact at the time the contract is created.

Key Messages/Capabilities Shown:

 Capture of agricultural specific contract terms (qualities, quantities, optionalities) with impacts on
pricing
 Flexible timing and definition of pricing

Solution Components Shown:

 Contract Capture
 Pricing Aspects (pricing for partial quantities of the line item and on a component-basis)
 Tolerance Schedules
 Discount and Premium Quality Schedules

What To Do & What you should see

Steps:
1. WB21 - Trading contract: Create
a. Select contract type = GTP1 for Third party purchase
b. Pop-up will appear for Organizational data; enter TEW Type = Standard and enter the Sales
Org and Purchasing Org data
c. Press Enter

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2. Contract Creation (continued)
a. Enter Vendor number
b. Enter External Number = (any name, e.g. THIRD PARTY PURCHASE [NNN])
c. Press Enter. Many values will be defaulted based on the customer and org data (for example
Incoterms = DDP under Basic Data)

3. Enter Item Details

a. Select the Overview icon
b. Enter Material = W100610000, Quantity = 1000 LB, Plant = 3001
c. Press Enter

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4. Enter Item Details (Continued)
a. To complete the item details, double-click on the Material field; this will take you to the item
details to be completed
b. Select the Commodity Items tab
c. Select the Create a new commodity item icon
d. Enter the Commodity Item Quantity (quantity must be the same as entered on the overview
screen) = 1000 LB
e. Enter the Date From/To, the expected delivery period of the commodity. Use the current month
start and end dates.
f. Press Enter

5. Enter Pricing
a. To price the contract, select the commodity item and select the open pricing aspect icon. This
example will be partially priced at the time of contract creation and execution and will be fully
priced later.
b. Select the Create Pricing Aspect Item icon and enter the following:
o Pricing Aspect = FBPR (this is a futures and basis pricing type, which allows for two
condition types to be entered for the base price of the contract)
o Pricing quantity = 100
o Fixing date = today’s date (if there were multiple pricing aspects with different dates, this
date could be used to prioritize how to assign pricing to a given load, through configuration)
o Press Enter to open additional fields for entry
o FP01 (Futures) = Amount 2.00 USD 1 LB (Amount, Unit, Unit)
o BP01 (Basis) = Leave empty
Since we have only partially priced this quantity, provisional pricing from BRFPlus rules will
be used for provisional settlement for the unpriced component and quantities. Settlement
will not be final until we completely price the quantity to be settled
c. Press Enter

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6. Enter Contract Terms
a. Select the Tolerances tab. On the Tolerance tab enter the following:
o Tolerance Schedule ID = TOL 10%
o Tolerance Type ID = 03, Per Contract
o Buyer/Seller = Buyer
o Press Enter, the schedule values will be populated from master data
The tolerance schedule defines how much overfill and underfill quantity is permitted on the
contract, how it should be priced, and when tolerance will be evaluated. In this example,
we will allow overfill and underfill quantities of up to 10%, with different pricing for quantities
up to 3% and between 3 and 10%. Tolerance will be evaluated when the user indicates
that the final load for the contract has been received, since we have selected a tolerance
type of “Per Contract”.

b. Select the DPQS tab (Discount/Premium Quality Schedule). On the DPQS tab enter the
following:
o Schedule Name = WHEAT VALUE SCHEDULE W100610000
o Timing = C at Contract
o Governing Weight Code = ZDOW
o Governing Analysis = ZDOA
o Version = 001
o Validity Version = 001
o Press Enter, the schedule values will be populated from master data
The DPQS schedule defines the quality terms required by the contract. By scrolling down,
you can see two subscreens with the characteristic details. In this example, the Moisture
percentage must be between 0 and 30% for a load for the quantity to be assigned to this
contract. Depending on the percentage, a discount will be taken for the percentage up to
10%, a different discount for the percentages between 10% and 20% and between 20%
and 30%, the contract counterparts must negotiate the discount. This negotiated discount
can be entered during settlement. A similar definition exists for Foreign material. Double
click on the Characteristic in the Details subscreen to see the ranges. The Governing
Weight and Analysis codes determine which version of the weights and characteristic data
will be used for settlement, in case we capture multiple values. The Timing determines

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 which version of the schedule will be used. The Material Schedule tab indicates which
materials can be accepted against this contract. This is a preliminary validation, prior to the
characteristic ranges being applied.

c. Select the Additional Contract Conditions tab and show the dropdown for the optionality
categories (no data will be entered in this tab for the demo). The delivered optionality
categories are shown. For example, the contract terms could include multiple potential delivery
plants, each with a premium or discount. The user could enter the alternative discharge
locations here with their premiums and discounts. Depending on the actual delivery location,
settlement will calculate and consolidate the value for the location, against the contract base
price (the futures and basis price).
d. Select the Expenses icon and add an expense, for example, for drying:
o Select the Planned Expenses With Settlement tab
o Expense Class Group = 01
o Expense Class = 013
o Accounting Type = B
o Posting Type = 3 (Provision for Payables to ensure accrual)
o Press Enter (You may receive a warning message that the service contract does not exist, if
so, press Enter again to proceed)
o Condition Type = GE06
rd
o Partner = 3941 (this is the 3 party that is delivering the service)
The value of this expense can be configured to be completely or partially recovered from
rd
the trade counterpart. That is, the 3 party would be paid and the amount could be netted
against the purchase value in settlement. In this example, we will not recover the expense
from the trade counterpart.
o Amount = 75 USD
o Press Enter

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Save the contract by selecting the save icon
System message = Trading contract nnnnn is created
Record the contract number

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 Step 3.0 - Act 3: Logistics Execution

What to say

In these steps, the execution team creates a purchase order and references (creates a call-off to) the contract
created in the previous step. SAP ACM allows the user to create an order line item with reference to more than
one contract, in contrast to SAP MM. This allows agricultural companies to apply loads across contracts, to
ensure that a particular quantity is fulfilled prior to fulfilling another contract, without creating many manual
delivery documents.

Key Messages/Capabilities Shown:

 Ability to link a purchase order line item to multiple trading contracts (although the demo will link to only
one contract)
 Ability to create an order, for planning purposes, with call off to contract(s) as well as where an order
could be generated automatically upon arrival of loads

What To Do & What you should see

Steps:
1. ME21N – Purchase order: Create
a. Select order type = ZNB, ACM Standard PO
b. Enter Vendor number
c. If needed, enter Purchasing Organization data and Company Code in the Header
d. Press Enter
2. Enter Item Details
a. Enter Material = W100610000

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 b. Enter PO Quantity = 200 LB
c. Enter Plant = 3001
d. Enter Storage Location: 0001
e. Press Enter

3. Verify Delivery and Confirmation Details

a. Select the delivery tab and ensure that the incoterms are listed as DDP (this indicates that Title
Transfer is at destination).
b. Select the Confirmation tab and ensure that Conf. Control = ANLI Inbound Delivery ECC
4. Enter Item Details (Continued)
a. To complete the item details, select the Call-Off tab
b. The Optionalities area can remain with the default information, but if the user wanted to restrict
the possible matching contracts, this area could be updated with precise information. Then,
based on the contract terms, only matching contracts would be proposed when loads are
received.
c. Select the Propose Contracts icon (scroll down in the Call-Off tab, below the “External Ref.
Doc.” subscreen)

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 d. From the pop-up, select the contract number created in Act 2.
e. Enter the portion of the PO quantity to be called off to this contract. In this example, we will only
call-off 1 contract, so enter a call-off quantity and UoM of 200 LB, the entire PO line item
quantity.
f. Press Enter

Save the PO by selecting the save icon

Select save on the warning pop-up
System message = Purchase Order nnnnn is created
Record the PO number

Step 4.0 - Act 3: Logistics Execution - continued

What to say

Next, the supplier delivers the loads of wheat by truck. As each load arrives the following occurs:
 Each truck is weighed and sampled.
 Quality analyses are performed and evaluated.
 The weight and analyses details are entered for each load and in the background the follow-on
documents are automatically generated for inventory and accounting updates.
 Based on the results of the analysis with respect to the contract terms, the load quantity is logistically
adjusted.
 Each load is evaluated against the contract terms and is automatically applied to the contract using the
LAQ (Logistically Adjusted Quantity).
 The drying cost (the expense we captured in the contract) is accrued for each load.

Key Messages/Capabilities Shown:

 Automated quantity adjustment and assignment of loads to contracts
 Automated distribution of pricing lots to load quantities
 Flexible reassignments of loads and pricing
 Automated follow-on document generation with expense accruals

Solution Components Shown:

 Capture Load Data with automated follow-on document generation
 Contract/Load Assignment

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What To Do & What you should see

Steps:
1. Menu Path: Agricultural Contract Management > Load Data Capture > Maintain LDC > Create LDC
Object
a. Enter the PO number and line item (0010) of the PO created in the last step
b. Press Enter
c. Some data is pre-populated
d. Ensure that the LDC type is Incoming
e. Enter Mode of Transport = 01 Road
f. Change the Event to 02 Unload (weight and analysis information related to the load at the
vendor’s site can also be captured in the system, if needed, but only the unload data is required
for this scenario).
g. Enter Event Location = 3001
h. Press Enter
i. Press the Execute icon

2. Enter the Load Details

a. Double-click on the LDC ID (a temporary number starting with $)
b. In the lower screen, navigate to the Weights Details tab
c. Enter Certificate Category, 01, Official (When we created the contract, we selected official
weights as the required weights for final settlement in the DPQS tab. Therefore, the weight
entered here will be used for subsequent calculations. If we enter a certification that is lower
than official, based on configuration, it would be captured, but only the official certification value
would be used for final settlement, so another weight entry would be required.
d. Enter UoM LB
e. Enter Gross Weight, 199 LB (slightly less than the PO quantity)

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 f. Enter Tare Weight 0 (the system can calculate the quantity as gross minus tare, but we are only
entering the commodity quantity in this example)
g. Press Enter

3. Enter the Load Details (continued)

a. Navigate to the Analysis Details tab
b. Enter Certificate Category, 01, Official
c. Enter Analysis Type 01, Federal
d. Select the Add Characteristics icon
e. Select Foreign Material and Moisture from the pop-up
f. Enter 2% as the Foreign Material percentage
g. Enter 5% as the Moisture percentage
(Based on our contract terms, these values are within the acceptable range and we will take a
discount based on the percentages).
h. Press Enter
Additional analysis details could be captured here, for example, the inspector name, certificate ID,
and values for other characteristics. Also, as with weights, we have defined in the contract that
official analysis is required for final settlement, so if we had selected a different level of certification,
the data would be captured, but another entry would be required for final settlement.

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 4. Press the green arrow to go back to the main LDC item
5. Press Save
6. Select the row and press the Select for Release icon (green flag)
7. Press Save, the Event Status should be “OF Execution Successful”. This step will take time due to the
documents being generated in the background (see below).

If we are waiting for additional weight and characteristic information, we could release the document at a
later time. However, once we release the document, the system generates a number of documents in the
background, including the Delivery document, the Goods Receipt, and the SAP ACM Application Document.
In a scenario where we had not previously created a PO and called it off to a contract, we could have
entered a contract number on the Create LDC screen, and even the PO would have been generated for us.

Record the LDC number

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8. Verify that the load was applied to the contract and PO that were created in the previous steps.
9. Menu Path: Agricultural Contract Management > Contract Application > Manual Application Workcenter
> Contract Application
a. Enter the LDC Object ID (the number you recorded in the previous step) and execute
b. The Application Document Details should appear as green with the status of Finally Applied

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c. Click the ApplDocNo link
d. Select the Item tab
e. In the lower subscreen, view the References tab to see the SAP documents have been
generated, including the Inbound Delivery and the Goods Receipt
(If you do not see the References tab or the DPQS tab, select the toggle icon to
change the view)
f. Select the DPQS Evaluation tab

g. Note that adjustments have been made to the quantity applied to the contract, due to the
quantity of foreign particles and moisture associated with the received quantity. This is due to
the DPQS volume schedule that has been applied, which defines adjustments to the quantity
depending on characteristics values. DPQS allows the user to create adjustments for both the
quantity to be applied to the contract as well as the value (price premiums or discounts) of the
quantity, depending on characteristics of the material.
h. Before leaving the screen, click on the Doc Flow icon in the Items subscreen. Here, you have
another view of the related documents such as the Inbound Delivery and the Goods Receipt,
and you can also see that the Expense entered in the contract generated an accrual, at the time
of Goods Receipt.

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Record the Application Document number

Step 5.0 - Act 4: Financials

What to say

Settlement is an invoicing and billing pre-processor that consolidates multiple transactions against one or more
contracts, and uses schedules and other terms specified on the contract to calculate an adjusted price that is
used to issue payment.

In this step, the load is settled and the accounting team reviews the results and approves the settlement. They
ensure that:
 Based on the analysis results of the load, the appropriate discounts and premiums were applied.
 The quantity settled is based on the logistically adjusted quantity from analysis (from the values for the
relevant characteristics).
 The pricing aspects on the contract were consumed appropriately based on the rules established.
 The invoice is created for the consolidated amount.
 An unplanned drying expense was incurred at the customer destination.

Key Messages/Capabilities Shown:

 Consolidated settlement with business partner

 Settlement is an iterative process that may be carried out several times using provisional details if
contract is not yet fully priced or final weights and analysis are not available.

Solution Components Shown:

 Consolidated settlement
 Invoicing
 Expense Settlement

What To Do & What you should see

Steps:
1. Menu Path: Agricultural Contract Management > Contract Settlement > Settlement Workcenter > Create
Settlement
a. Enter the Application Document number
b. Press Execute
c. Select the row
d. Select the Simulate Settlement icon > Propose Groups
e. Select the row in the Settlement Group in the middle screen
f. Select the Generate icon

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 g. Double click on the Group ID
h. Select the Settlement Unit from the Settlement Units subscreen and select the details icon

2. View the settlement document

a. Navigate to the Settlement Unit Item Details and select the Pricing Tab
b. The pricing aspect that was created on the contract for 100 LB has been assigned to the
contract and the Futures price is defined as established, while the Basis price is defined as
provisional, since it had not been entered in the contract. This value shown here has been
retrieved from the BRFPlus rule for provisional pricing, based on the material and other factors.
c. The quantity that had not been priced in the contract is completely provisional. This quantity is
the difference between the adjusted quantity (based on the DPQS volume schedule
adjustments) and the quantity assigned to pricing aspects.
d. The expenses tab is empty in this example because we have not defined the expense as
recoverable from the counterpart. If we had, it would be consolidated here, along with the other
values to be settled with the trade counterpart.

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e. View the Settlement Amounts by selecting that tab in the Settlement Unit Header Details
subscreen. Here you will see an itemized list of the adjustments made to the base price,
including the DPQS value adjustments.
f. View the Document Status field to see that this Settlement is Provisional (value P). This allows
the contract counterpart to be paid, but allows for additional details to be captured and the
difference calculated later, for final settlement. If desired, the user can define that provisional
settlements are not paid at 100% of the calculated value, but at a lower percentage. This
reduces the risk of disbursing more than the final amount during a provisional or interim
settlement.
g. Record the Settlement Group number

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3. Release the Changed Settlement
a. Double click the Change Settlement node
b. Verify that the Settlement Group is the group you created and if not, enter the correct group.
c. Execute
d. Select the Settlement Group row
e. Select the Release icon from the Settlement Group subscreen.
f. Select Release.
g. Select a Reason Code and enter a comment (optional).
h. Select the OK icon
i. Save

4. Approve the Settlement: Menu Path: Agricultural Contract Management > Contract Settlement >
Settlement Approval Queue (This is in its own menu path to allow for clear segregation of duties
between users that have authorization to release settlement and those who can approve it).
a. Double click Settlement Approval Queue
b. Verify that the Settlement Group is the group you created and if not, enter the correct group.
c. Execute
d. Select the Settlement Group row
e. Select the Release icon from the Settlement Group subscreen
f. Select the row
g. Select the Release and Approve Icon > Approve

rd
5. Settle the drying expense with the 3 party. Menu Path: Agricultural Contract Management > Expense
Management > Invoice Router
a. Double click on invoice router
b. Enter any value for the Reference, for example, “Drying Fee”.
c. Enter today’s date as the Invoice Date
d. Enter your Trading Contract number (the contract create in Act 2)

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 e. Press Execute
f. In the Settlement Using Trading Contract subscreen, select the row where the Name of the
TrContType = Standard PO Shadow. In the background, the accrued expense has been
related to the PO and its delivery.
g. Select the icon for Settle with Expense Workbench
h. Select the row and select Follow-on Doc List

i. Select the Inbound Delivery and select Expense Doc List

j. Select the row and select the Settle icon. Here, if needed you could change the amount to be
rd
settled. The expense will be remitted to the 3 party that provided the drying service.

6. Add new pricing to the contract so that the quantity will be fully priced and settlement can be final for
this quantity.
a. Go to WB22, Trading Contract Change. Enter the number of the contract created in Act 2 and
press the Overview icon.
b. Double click on the material and navigate to the Commodity Item tab.
c. Select the Commodity Item and select the Open Pricing Aspect icon.

d. Select the Create Pricing Aspect Item icon and enter the following:
o Pricing Aspect = FBPR (this is a futures and basis pricing type, which allows for two
condition types to be entered for the base price of the contract), the same as for the first
pricing aspect.
o Pricing quantity = 100
o Fixing date = today’s date (if there were multiple pricing aspects with different dates, this
date could be used to prioritize how to assign pricing to a given load, through configuration)
o Press Enter to open additional fields for entry
o FP01 (Futures) = Amount 2.05 USD 1 (Amount, Unit, Unit)
o BP01 (Basis) = .4 USD 1 (Amount, Unit, Unit)
o Also enter a Basis value for the existing pricing aspect: BP01 (Basis) = .3 USD 1 (Amount,
Unit, Unit)
Since we have only partially priced this quantity, provisional pricing from BRFPlus rules will
be used for provisional settlement for the unpriced component and quantities. Settlement
will not be final until we completely price the quantity to be settled
e. Press Enter and Save the Contract

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7. Return to the Settlement WorkCenter to proceed with Final Settlement for the quantity: Menu Path:
Agricultural Contract Management > Contract Settlement > Settlement Workcenter > Create Settlement
a. Enter the Application Document number
b. Press Execute
c. Select the row
d. Select the Simulate Settlement icon > Propose Groups
e. Select the row in the Settlement Group in the middle screen
f. Select the Generate icon
g. Double click on the Group ID
h. Select the Settlement Unit from the Settlement Units subscreen and select the details icon

8. View the settlement document

a. Select the Settlement Unit and select the details icon
b. The Document Status is now F, Final.
c. In the Settlement Unit Item Details select the Pricing Tab
d. The pricing aspect that was created on the contract for the additional 100 LB has been
assigned to the load (not the entire 100 LB, but only the amount of pricing needed for the
adjusted quantity). The pricing is all final; none of the pricing has been retrieved from the
BRFPlus rule for provisional pricing.

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9. Release the Settlement
a. Double click the Change Settlement node
b. Verify that the Settlement Group is the group you created and if not, enter the correct group.
c. Execute
d. Select the Settlement Group row
e. Select the Release icon from the Settlement Group subscreen.
f. Select Release.
g. Select a Reason Code and enter a comment (optional).
h. Select the OK icon
i. Save
10. Approve the Settlement: Menu Path: Agricultural Contract Management > Contract Settlement >
Settlement Approval Queue
a. Double click Settlement Approval Queue
b. Verify that the Settlement Group is the group you created and if not, enter the correct group.
c. Execute
d. Select the Settlement Group row
e. Select the Release icon from the Settlement Group subscreen
f. Select the row
g. Select the Release and Approve Icon > Approve
11. View the document flow
a. Select the Group and select the Details icon.
b. Select the Doc Flow icon at the top of the screen. You can see the full document flow for the
contract and its loads, through invoicing.

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 12. Realize the Purchase – This step closes the books on this purchase and indicates that everything is
complete, including Title Transfer, all weights and grades have been captured, pricing is final, and
settlement is final. For purchases, this process updates the contract to reflect that the purchase has
been realized for the settled quantity. This step is more critical on the sales side, where account
postings are done, to indicate that revenue can be recognized for the sale. Menu Path: Agricultural
Contract Management > Contract Settlement > Revenue Recognition > Revenue Recognition
Processor
a. Select Purchase Realization
b. Enter your Purchase Order
c. Execute
d. Select the row and Select the Process (Realize Purchase) icon

Step 5/Act 5, Position Monitoring, is executed through a customer’s own reporting and tools and is not included in the
demo.

You have now successfully:

 Contracted with a vendor to supply additional wheat to compensate for a short position. You captured the
required quality characteristics and their discounts and premiums, as well as other contract terms for this
quantity. You partially priced the contract when you created it and changed and added new pricing after the
load was delivered and provisionally settled.

 Captured the weight and analysis details of the quantity when it was unloaded at your plant.

 Settled with the trade counterpart when you received the load, even though you did not have complete
pricing.

 Added/changed contract pricing and then settled the finally calculated amount with the trade counterpart.

 Settled with the drying service provider.

 Realized your purchase, ensuring that all required steps have occurred.

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4. APPENDIX
4.1 HOW TO RESET THE DEMO
N/A

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© COPYRIGHT 2014 SAP AG. ALL RIGHTS RESERVED.

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