demystifying the usage of sub-items in is-oil tsw

7/24/2019 Demystifying the Usage of Sub-Items in is-OIL TSW

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Demystifying the Use of Sub-Items in IS-OIL TSW

The objective of this whitepaper document is to demonstrate the usage of IS-OIL TSWSub-Items and its functionalities. It aims to focus on providing an understanding of atypical nomination scenario in an Oil & Gas company and how the Sub-Items enhancedfunctionalities can be implemented to effectively handle the business requirement of theOil & Gas company. This whitepaper also aims to introduce the usage of both standardand enhanced function modules in the junction function configuration along with sub-itemsfunctionalities to achieve the desired results.


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Author: Phang Kok WaiCompany: SAP MALAYSIACreated on: 20 November 2013

AUTHOR BIO

Phang Kok Wai is a Certified consultant in SAP SD & SAP IS-OIL. He currently works atSAP Malaysia and has more than six (6) years of solution implementation experiencespecializes in the Logistics modules covering SAP SD, MM, LE & IS-OIL (TD, TSW andHPM) modules. His main focus includes providing professional consulting services in thearea of SCM to customers in various industries and also to customers in Industry Solution forOil & Gas.


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TABLE OF CONTENTS

AUTHOR BIO .................................................................................................................................................... 2

INTRODUCTION ............................................................................................................................................... 4

PREREQUISITE ................................................................................................................................................ 4

MODELLED BUSINESS SCENARIO ............................................................................................................... 5Scenario 1: Purchase of Crude from Vendors .............................................................................................. 6Business Process Flow...................................................................................................................................... 6Design Consideration ........................................................................................................................................ 7Scenario 2: Sales of Finished Products to Customer ................................................................................ 12

Business Process Flow.................................................................................................................................... 12

Design Consideration ...................................................................................................................................... 13

OTHER DESIGN CONSIDERATION & LIMITATION ..................................................................................... 19TSW Nomination design ............................................................................................................................... 19Storage Location at Sub-Items level ............................................................................................................ 19QCI Parameters at Sub-Items level .............................................................................................................. 19

CONCLUSION ................................................................................................................................................. 20

RELATED CONTENT ..................................................................................................................................... 20


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INTRODUCTION

This whitepaper is written based on a real case scenario of a typical tolling refinery in the Oil & Gas industry.Tolling refinery is when two or more companies enter into a tolling agreement to supply a certain amount ofraw materials to the refinery.

In real business scenario, two or more oil companies can enter into an agreement to jointly supply a certainamount of barrels of crude oils to the tolling refinery for refining and thereafter selling the refined oil (finishedproducts) to end customer along the supply chain or supplying back to the oil companies themselves andvice versa. This largely depends on various geographical factors that these oil companies enter into anagreement to form the tolling refinery, and usually it will be a mutually advantageous one.

For example the tolling refinery can be located in a strategic location to effectively supply to its customersalong the supply chain or the refinery could be situated near the oil exploration locations, thereby reducingthe transportation costs for sending the crude oils to the refinery for refining.

PREREQUISITE

In order for the modeled scenario to work, the following pre-requisites are required to be maintained:

Ticketing Actualization at Sub-Itemsneed to be flagged for the relevant Transport System.

Note: As per standard SAP, a separate Intransit Plant & Storage Location should be used for theTransport System. However, should there be a requirement to use an actual Plant of the Refinery, whicha user exit can be implemented to make this possible.


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MODELLED BUSINESS SCENARIO

To demonstrate the usage of TSW Sub-Items in this whitepaper, two broad (2) business scenarios can bemodeled as follow, with tight linkage to SD and MM modules:

Scenario 1Purchase of Crude from Vendors

Scenario 2Sales of Finished Products to Customer


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Scenario 1: Purchase of Crude from Vendors

Business Process Flow

Referring to the broad scenario in the diagram above, the business process flow that can be modeled for thisscenario is as followed:

The process flow for the Purchase scenario of this Tolling Refinery business case is as follow:

a) For the business case demonstrated here, the tolling Refinery shareholders are responsible toschedule and arrange the Crude purchases from their respective list of vendors. The Tolling Refineryis then informed on the estimated date of arrival (ETA) of the Vessel for the receipt process of thecrude accordingly.

b) Purchase Contract is created to capture the long term purchase quantity for a stipulated periodcarried out by each shareholder. For each voyage and estimated load receiving from the vendor thatis arranged by a shareholder, a Purchase Order is created with reference to that particular PurchaseContract. At this point, the nominated quantity is known.

c) A TSW Nomination is created for the expecting Vessel that has been chartered by the shareholder.The Purchase Order (also known as the release order) is assigned to the TSW Nomination. This firstleg is to capture the first leg of the movement from the Supplier into the Vessel (In-transit location).

d) Additional TSW Nomination line items are created accordingly for each unique Material Number tocapture the second leg of the movement from the Vessel (In-transit location) to the actual tank(s).Where the Vessel is required to be discharged into multiple tanks (for the same material), sub-itemsare created accordingly for these line items.

e) The actualization are carried out in the following sequence:

Goods Receipt of Crude from Vendor into Vessel (In-transit location). This will trigger a+101 movement type.

Goods Receipt of Crude from Vessel (In-transit location) into actual tank(s). This will triggera 301 movement type to remove stocks from In-transit location into actual tanks of therefinery.

Create PurchaseContract

CreatePurchase Order

Create TSWNomination

Assign PurchaseOrder(s) to TSW

Nomination(O-P lines)

Add TSW line items& Sub-Items to TSW

Nomination (D-Xlines)

Create/ActualizeTickets for TSW line

items


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Design Considerat ion

Referring to the broad scenario in the diagram above, the highlights on the process flow above are as follow:

1. First leg of the TSW Nomination (Line Item 10) is created with reference to the Purchase Order (PO)created to bring the stock from the Supplier (Origin location) to the Vessel (In-transit location). This isbased on the standard TSW Movement Scenario 1, which is also known as the O-P scenario.

2. Ticket is created for the first leg and is actualized, thereby bringing stocks from the Supplier to the

Vessel (In-transit location).


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3. Second leg of the TSW Nomination (Line Item 20) is created with without any reference, which brings thestock from the Vessel (In-transit location) to the actual tanks within the Refinery through a Plant-to-Planttransfer. This is based on the standard TSW Movement Scenario 4, which is also known as the D-X

scenario.

Note: Standard MVSCEN_01is configured to use IS-OIL TD functionality, but the above configurationis configured to use only the Material Document posting (without TD) for the Purchase Order.

Note:Standard Tank No. field in the Sub-Items has been considered to be used to reflect the actualStorage Location in SAP. To achieve this, enhancement to activate the F4 Search Help of theTANK_NR field is required at Sub-Items tab, which should retrieve Storage Location from T001L table.


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4. Ticket(s) are created for the second leg and are actualized, thereby bringing stocks from the Vessel (In-transit location) to the respective actual tank(s).

The successful posting of the Sub-Items indicates that the Goods Receipt (GR) is created for the TSW sub-items and stocks are removed from the Vessel (In-transit location) and received into actual storage locationsvia standard 301 movement type.

Take note that when the Sub-Items line items exist, the system takes the TANK_NR field of the Sub-Itemsand disregard the Partner Storage Location at Item level. This is possible to be achieved throughenhancement of the standard function module, which will be described in the later section.


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This can be achieved by enhancing the standard Junction Function and assigning it to the configuration forTSW Scenario 4 as below:

Standard Function Module as follow can be used to achieve the desired result:

Note: Standard SAP updates the Delivery field in the Sub-Items line items with the Reservationnumber. If Outbound Delivery is carried out at Sub-Items level, then the Delivery field is updated withOutbound Delivery number.


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Implementation consideration:

A new Function Module ZOIJ_EL_DOCG_CREATE_RESERVATION can be created with referenceto standard function module OIJ_EL_DOCG_CREATE_RESERVATION. Thereafter, the custom

Function Module can be enhanced with the logic to consider the sub-items of the respective line itemto create the Reservation document based on the quantity of each sub-items. This enhancement isrequired as the standard function module does not consider the TANK_NR as the storage location tobe used in the Reservation document creation.

A new Function Module ZOIJ_EL_DOCG_CREATE_GR_N can be created with reference to thestandard Function Module OIJ_EL_DOCG_CREATE_GR_N . Thereafter, the custom FunctionModule should be enhanced to post a Goods Receipt for each Reservation at Sub-Item level.Standard function module calls the transaction code MB01 and post with movement type 301,which is hardcoded by SAP. Should a different movement type is planned to be used, additionalcoding is required to update the movement type accordingly into the custom Function Module.

The Function Module ZOIJ_EL_DOCG_UPDAT_NOMINATION_N can be created with reference to

the standard Function Module OIJ_EL_DOCG_UPDAT_NOMINATION_N . Thereafter, the customFunction Module should be enhanced with the consideration of updating the TSW Nomination afterthe above function modules are posted successfully. Once TSW Nomination is updated successfully,do take extra care that the standard table OIJ_EL_DFLOW_SUB should be updated accordinglywith the relevant reference document based on the enhanced method of posting goods movement inthe earlier Function Module. This is important to ensure data integrity and consistency.

Finally, Oil tables should also be considered carefully in the implementation of the aboveenhancement of the custom Function Modules so that the Oil data are passed accordingly tostandard MSEGO1 and MSEGO2 table when Material Documents are created for the storagelocations maintained at the Sub-Items levels. In addition, the table OIJ_EL_TKT_I_O1 andOIJ_EL_TKT_I_O2should also be considered in the enhancement to pass the Oil data accordinglywhen Ticket is created for the TSW Nomination. This is to ensure accurate reporting and data

integrity is not jeopardized by the enhancement.Scenario 2: Sales of Finished Products to Customer

Business Process Flow

Referring to the broad scenario in the diagram mentioned above, the business process flow that can bemodeled for this scenario is as followed:

The process flow for the Sales scenario of this Tolling Refinery business case is as follow:

Create SalesContract

CreateSales Order

Create TSWNomination

Assign Sales Order(s)to TSW Nomination

(D-S lines)

Add TSW line items& Sub-Items to TSW

Nomination(O-X lines)

Create/ActualizeTickets for TSW line

items


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a) For the business case demonstrated here, the tolling Refinery shareholders are responsible toschedule and arrange the Finished Products sales to the shareholders respective customers. TheTolling Refinery is then informed on the estimated date of arrival (ETA) of the Vessel for the pick-upof the finished products by the customer. There are also delivery scenarios to customer, but the

monitoring of the goods delivered is not required after the goods have left the Refinery. Themonitoring is done by the respective shareholders. As such, the IS-OIL TD module is also notconsidered to be used in this scenario.

b) Sales Contract is created to capture the long term sales quantity for a stipulated period carried outby each shareholder. For each voyage and estimated load discharging from the Tolling Refineryplants is arranged by the shareholder, a Sales Order is created with reference to that particularSales Contract. At this point, the nominated quantity is known.

c) The TSW Nomination line items are created accordingly for each unique Material Number to capturethe first leg of internal Plant-to-Plant movement from one or more actual tank(s) to the Vessel (In-transit location). Where the Vessel is required to be loaded from multiple tanks (for the samematerial), sub-items are created accordingly for these line items.

d) A TSW Nomination is created for the expecting Vessel that has been chartered by the shareholder.The Sales Order (also known as the release order) is assigned to the TSW Nomination.

e) This second leg is to capture the movement from the Vessel (In-transit location) to the customer.f) The actualization are carried out in the following sequence:

Goods Issue of Finished Products from actual tank(s) into the Vessel (In-transit location).This will trigger a 301 movement type to remove stocks from In-transit location into actualtanks of the refinery.

Goods Issue of Finished Products from Vessel (In-transit location) to the customer. This willtrigger a -601 movement type.

Design Considerat ion

Referring to the broad scenario in the diagram above, the highlights on the process flow above are as follow:

1. First leg of the TSW Nomination (Line Item 20) is created with without any reference, which brings thestock from the actual tanks within the Refinery through a Plant-to-Plant transfer to the Vessel (In-transitlocation). This is based on the standard TSW Movement Scenario 2, which is also known as the O-Xscenario.


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2. Ticket is created for the first leg and is actualized, thereby bringing stocks from the actual tank(s) to the

Vessel (In-transit location).

Document flow indicates that the Goods Issue (GI) is created for the TSW line item and stocks arereceived into the Intransit Storage Location via a 301 movement type.


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This can be achieved by enhancing the standard Junction Function and assigning it to the configuration forTSW Movement Scenario 2 as below:

Standard Function Module as follow can be used to achieve the desired result:

Implementation consideration:

A new Function Module ZOIJ_EL_DOCG_CREATE_RESERVATION can be created with referenceto standard function module OIJ_EL_DOCG_CREATE_RESERVATION. Thereafter, the customFunction Module can be enhanced with the logic to consider the sub-items of the respective line itemto create the Reservation document based on the quantity of each sub-items. This enhancement isrequired as the standard function module does not consider the TANK_NR as the storage location tobe used in the Reservation document creation.

A new Function Module ZOIJ_EL_DOCG_CREATE_GR_N can be created with reference to thestandard Function Module OIJ_EL_DOCG_CREATE_GR_N . Thereafter, the custom Function

Module should be enhanced to post a Goods Receipt for each Reservation at Sub-Item level.Standard function module calls the transaction code MB01 and post with movement type 301,


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which is hardcoded by SAP. Should a different movement type is planned to be used, additionalcoding is required to update the movement type accordingly into the custom Function Module.

The Function Module ZOIJ_EL_DOCG_UPDAT_NOMINATION_N can be created with reference to

the standard Function Module OIJ_EL_DOCG_UPDAT_NOMINATION_N . Thereafter, the customFunction Module should be enhanced with the consideration of updating the TSW Nomination afterthe above function modules are posted successfully. Once TSW Nomination is updated successfully,do take extra care that the standard table OIJ_EL_DFLOW_SUB should be updated accordingly withthe relevant reference document based on the enhanced method of posting goods movement in theearlier Function Module.

Finally, Oil tables should also be considered carefully in the implementation of the aboveenhancement of the custom Function Modules so that the Oil data are passed accordingly tostandard MSEGO1 and MSEGO2 table when Material Documents are created for the storagelocations maintained at the Sub-Items levels. In addition, the table OIJ_EL_TKT_I_O1 andOIJ_EL_TKT_I_O2should also be considered in the enhancement to pass the Oil data accordinglywhen Ticket is created for the TSW Nomination. This is to ensure accurate reporting and dataintegrity is not jeopardized by the enhancement.

3. Second leg of the TSW Nomination (Line Item 10) is created with reference to the Sales Order, whichissue the stock from the Vessel (In-transit location) to the customer. This is based on the standard TSWMovement Scenario 3, which is also known as the D-S scenario.

4. Ticket(s) are created for the second leg and are actualized, thereby issuing the stocks from the Vessel(In-transit location) to the respective customer(s).


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Document flow indicates that the Goods Issue (GI) is created for the TSW line item and stocks arereceived into the Intransit Storage Location via a 101 movement type.


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This can be easily achieved by using the standard Junction Function configuration as below:

Note: Standard MVSCEN_03is configured to use IS-OIL TD functionality, but the above configuration isconfigured to use only the Outbound Delivery document and Goods Issue posting (without TD) for theSales Order.


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OTHER DESIGN CONSIDERATION & LIMITATION

Further to the above design considerations mentioned for each of the process flow, the following designconsiderations and/or limitation should also be considered:

TSW Nomination design

The standard functionality of having a multiple lines of D-S lines and O-P lines are adopted to meet thebusiness requirement of having multiple Sales or Purchases that can be scheduled and transported into asingle voyage. However, the rationale behind having a single line of internal movements (O-X lines or D-Xlines) in the TSW Nomination for each unique material is that the accumulated stock for a single material in asingle voyage can be combined, thereby providing a birds eyes view of how much of Material A, Material B,Material C and so forth is on the voyage.

Storage Location at Sub-Items level

The rationale of doing this is because each of these tanks (storage location) also individually has their ownO3DEFAULTS. As the oil O3DEFAULTS are only maintained for a combination of Material + Plant +Storage Location, the initial thought of using SOC Segment number to represent the multiple tanks in asingle storage location is a system limitation, let alone having multiple storage location in a single TSWNomination. As it is important for the business to group the unique materials into a single line at TSWNomination line item to provide a consolidated view as opposed to individually maintaining multiple lineitem(s) at TSW line item level, this approach is therefore used. The TANK_NR field at the Sub-Item istherefore considered to be used to represent the storage location, which a simple F4 Search Help can beeasily implemented by obtaining the storage location from T001L table.

QCI Parameters at Sub-Items level

As each of the movements for each Sub-Items from a single vessel are discharged or loaded from multiplestorage locations, each Ticket are individually created for each of the Sub-Items, which can occur at differentdate and time. As such, each Ticket can clearly capture the QCI parameters and the Additional Quantitiescalculated and carried out for each Sub-Item(s) during Ticketing. Other reason why it is designed as such isbecause this is due to the limitation that the is only one tab for Additional UoM at Ticket Item level, whichthereby hinder the possibility to trigger an additional quantities calculation for each sub-item dynamically.

To achieve this, an implicit enhancement to populate the O3DEFAULTS of the Plant/Storage Locationcombination for the Sub-Items during Ticketing is required. When the quantities are inserted in any of theactive Sub-Item(s) to be ticketed, QCI function module are used to derive and populate the O3DEFAULTSfor the Sub-Item maintained. To further prevent mistakes from occurring, where additional sub items aremaintained, a custom error message is triggered and subsequently the value is cleared in the ALV. This is

achievable via user exit at Ticketing. As such, the Additional UoM tab at the Ticketing will always accuratelyreflect the O3DEFAULTS of the storage location of the maintained Sub-Item. During Actualization, thejunction functions discussed earlier are used to post the follow-on documents and material document usingthe O3DEFAULTS of the tank at Sub-Item level.


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CONCLUSION

This whitepaper is intended to demonstrate the usage of Sub-Items in IS-OIL TSW and how the enhancedfunctionality is able to cater to the need of typical Tolling Refinery Sales & Purchase business scenarios.

The functionalities demonstrated in this document is achievable with enhancement to the junction function inSAP, which is feasible as it does not entail large enhancement and/or in any way cripple the standardfunctionality of the TSW. The business scenario demonstrated here can also support multiple items withmultiple ticketing.

RELATED CONTENT

Creating a Transport SystemTSW Nomination ProcessingTicket ProcessingTSW Movement Scenarios
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