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Commodity Pricing CPE/CPF March 2017

Introduction to Commodity Pricing Engine (CPE) Purpose of the development •

Commodity Pricing Engine (CPE) is an extended ERP pricing to allow a special price calculation for commodities that are traded on exchanges.

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CPE brings complex commodity business pricing rules into standard SAP sales and purchase process.

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CPE is enabled to be integrated in various pricing solutions.

Core ERP Pricing Generic Commodity Pricing Engine IS-Oil Pricing For Commodity

IS-Mine Pricing For Mining

IS-DIMP*/Cable Pricing For Metals

Other

* DIMP (Discrete Industries and Mill Products) Management Information Team

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Commodity Pricing Engine (CPE) • Commodity Pricing Engine (CPE) is used to calculate complex pricing rules in Purchase/Sales documents as well as trading contracts for commodities such as metals, ore, oil or other commodities. • Pricing for commodities is based on agreed complex rules maintained in Commodity Pricing Engine (CPE). These complex rules determine how price quotations and exchange rates are used to calculate price of the document. • Price calculation is based on complex rules using real stock market and currency data. This should ensure that price changes of the commodities are reflected in product’s prices. • Complex rules are based on business negotiations, throughout whole business process (sales or purchasing or both).

Architecture Document Data

Combination rule

Formula Input

Quantities in multiple UoMs

Ref. Dates

Business data Formula Output

Rules Term 1

Result Term 1

Rules Term 2

Result Term 2

CPE Formula Evaluation

...

...

Rules Term n

Result Term n

Stock market prices

Currency exchange rates

Calendar functions

Customizing / Master Data

Formula result

Product quality

Configurable Parameters and Formulas in Pricing (CPF) • CPF consists of freely definable parameters and functions for calculations.

• System stores the parameter values together with business document and carries them through out whole business process • Assigning CPF formula to price condition calculates condition base, condition rate and/or condition value.

• Parameter values can be retrieved automatically in the business document from various data sources, such as batch. Values can also be entered manually. • CPF formulas and values can be defaulted in the business documents • Scales can be defined to determine parameter values.

Commodity Pricing Flow The SAP Commodity Procurement and SAP Commodity Sales applications provide commodity-specific functionality, enabling companies to capture commodity contracts, process transactions with commodity price and related complexity, execute logistical processes, incorporate quality management, and handle provisional through final settlements.

Process Flow: Maintain Quotations

Maintain CPE Rules

Maintain CPE Condition Record

Define CPF Formula

Create BRF+ Rule

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Assign BRF+ Rule to CPF Formula

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Commodity Pricing - Formula Maintenance 1: Commodity Pricing Engine (CPE): Define Quotations

Define Quotation Rule

Define Period Determination Rule

Define (CPE) Term

Define (CPE) Formula

Maintain CPE Condition Record

Define (CPE) Term Rule

2: Configurable Parameters & Formulas in Pricing (CPF): Define CPF Formula

Create BRF+ Rule

Assign BRF+ rule to CPF Formula

Maintain Condition Record

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Commodity Pricing Engine (CPE) Formula Maintenance

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Quotation & Period Determination Rules:

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Term Rule:

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Term:

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CPE Formula:

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Formula Assembly (Condition Records):

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Configurable Parameters & Formulas in Pricing (CPF) – Formula Maintenance

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Define Formula:

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Create Condition Record:

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CPF - Coverage of Pricing Rules Configurable Parameters and Formulas in Pricing (CPF) 

Creating CPF relevant Condition types

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Create CPF Parameter catalogue ( Field use in the condition Parameter).

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Define Formulas and assign with the formula Parameter.

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Setup BRF+ Application and rule for CPF formulas evaluation.

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Assigned usage Task (CPF formulas is linked with BRF+ Rule).

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Maintaining of condition record with the CPF formulas.

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Questions

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