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HPM - Hydrocarbon Product Management

Purpose
The component encompasses: The Silo Management System, which provides functionality for managing physical inventories in tanks by creating tank dips in the R/3 System, and comparing those inventories at any time with the book stocks. In that way, gains and losses can always be determined, and goods movements can be monitored. A flexible Quantity Conversion Interface (QCI) that converts volumes, masses and energy at ambient conditions (temperature, pressure, vapor pressure, calorific value, density) into volumes, masses and energy values at standard conditions. In addition, the Quantity Conversion Interface calculates density and heating value at standard conditions. External programs for calculating complex oil volume correction factors (c-code routines of the American Petroleum Institute, customer-designed programs) and natural gas compression factors (c-code routines of the American Gas Association, customer-designed programs) can be integrated with the QCI. The tracking of two-step plant-to-plant transfers, with a determination of profit and loss, and automatic posting of differences. An extension of inventory management and of the material documents, so that there are several units of measure. As part of that, several standardized quantities can be entered in documents, and inventories for those units of measure can be updated.

Oil Quantity Conversion


Use
Oil and oil products are bulk products in liquid form that are processed and shipped in large quantities by the oil industry. Even the smallest fluctuations in temperature can result in considerable fluctuations in volume, and as a result, to significant fluctuations in value. Because the measured volume of an oil product is temperature-dependent, volume correction and density correction are required, because the density of material is defined as the relation between mass and volume. For correcting volumes and density, in addition to the SAP Standard quantity conversion, there is an oil quantity conversion. It allows volumes at ambient temperature and densities at test temperature to be converted into densities, volumes and masses at standard temperature. The oil quantity conversion is thus used to convert the quantity of an oil product into various units of measure. From a technical point of view, the oil quantity conversion uses external c-code programs, which are accessed through an interface within the Quantity Conversion Interface (QCI). The c-code programs are licensed to SAP customers by The American Petroleum

Oil and Gas Quantity Conversion in the Purchasing Cycle


Use
Oil and gas quantity conversions within the purchasing cycle are always carried out at the actual time of the creation of the goods movement. The results of the oil and gas quantity conversion are updated in the material documents that are created by the system during the goods movement. Oil and gas quantity conversion is not integrated in the material master record, the purchase contract, and the purchase order, because the values are only planned values, and the actual

conversion factors (for example, density, temperature) are only known at the time of the goods movement.

Integration
This graphic shows how the oil and gas quantity conversion is integrated in the purchasing cycle.

Oil and Gas Quantity Conversion in Goods Movements


Use
Oil and gas quantity conversion is carried out when a material document is created for a goods movement (goods receipt or goods issue). Goods movements can either be "external" movements (goods receipts from external procurement, goods issues for customer orders) or "internal" movements (goods receipts from production, withdrawals for innercompany use, stock transfers, and other transfers).

Activities
Activating the Oil and Gas Quantity Conversion
You activate the conversion whenever you use an HIM material and enter the document quantity.

Additional Document Quantities

The system calculates the base quantity in the material document using the oil and gas quantity conversion, and saves it there. In addition to the base quantity, the quantities in the units of measure are calculated that are defined in the unit of measure group (see also Oil-Specific Data in the Material Master). The system expands the list of units of measure to be calculated. In addition to the units of measure defined in the unit of measure group, units of measure are copied from the purchase contract and from the purchase order. The system searches the purchase contract or the purchase order for units of measure that are neither in the unit of measure group nor are defined as base units of measure or as stockkeeping units of measure. If an additional unit of measure is found, the corresponding quantity is calculated in that unit of measure in the oil and gas quantity conversion.

Additional Stock Quantities


Stocks are managed in the base unit of measure (stockkeeping unit). For an HIM material, the stock quantities are also maintained in the units of measure of the unit of measure group. In the stock overview, you can display the additional stock quantities, which are available at plant, storage location, batch and special stock levels.

Conversion Mode
Depending on how the Conversion Mode, is set, in "old" transactions, the system carries out the calculation of the additional quantities either in dialog mode or as a background job. You can use the conversion mode to control whether or not the quantities can be manually overwritten. In Enjoy transactions, all modes other than the semi-manual mode are treated the same. In the semimanual conversion mode, you cannot change the quantities that are displayed using the oil and gas conversion subscreen.

Oil and Gas Quantity Conversion


The Oil Quantity Conversion or the Gas Quantity Conversion is used for calculating the additonal quantities. Those functions calculate quantities based on the definitions in Customizing under Industry Solution Oil & Gas (Downstream) HPM Petroleum Measurement Standards Quantity Conversion Interface (QCI) Configuration, and based on the settings of the units of measure in the material master. For liquid HIM materials, additionally, a density and volume correction is carried out based on density and temperature values. For gaseous HIM materials (natural gas), a density, calorific and volume correction is carried out based on density, calorific, temperature, and pressure values. In "old" transactions, the creation, processing and display of additional quantities and quantity conversion factors is carried out using the Oil and Gas Quantity Conversion Dialog Box; in Enjoy transactions, the Oil and Gas Quantity Conversion Subscreen is used.

Defaults Values
In support of oil and gas quantity conversion, the system uses Default values for the relevant quantity conversion factors. You can define the default values at plant, storage location or batch level per material, day, and time. The system always reads the default values from bottom to top, that means that the system first uses special values at batch or storage location level before using general values at plant level.

You can use the following transactions to enter default values: Enjoy transaction O3DEFAULTS "Old" transaction O3C1

Saving Additional Quantities


The quantities that are calculated additionally to the material document for the goods movement are saved automatically with the material document. You can then access the data for display in Displaying a Material Document.

Oil and Gas Quantity Conversion in Physical Inventory


Use
The oil and gas quantity conversion is carried out when a physical inventory count is made.

Activities
Activating the Oil and Gas Quantity Conversion
You activate the conversion by using an HIM material and entering the physical inventory quantity.

Additional Stock Quantities


Stocks are managed in the base unit of measure (stockkeeping unit). For an HIM material, the system additionally maintains the stock quantities in the units of measure of the unit of measure group. The additional stock quantities are available at plant, storage location, batch, and special stock levels. During physical inventory, you compare the posted book quantity with the counted quantity that was entered. The system converts the count quantity into the base unit of measure and compares it with the book amount in base unit of measure. The difference quantity between the book quantity and the count quantity is saved in a goods movement document. When an HIM material is used, the conversion of the count quantity into base unit of measure is carried out using the oil and gas quantity conversion. The book quantity is listed in the base unit of measure and also converted into the units of measure of the unit of measure group, and saved. The count quantities are compared with the stock quantities stored at plant, storage location, batch and special stock levels and are saved in the material document of the goods movement as an appendix.

Conversion Mode
Dependent on how the Conversion Mode is set, the system either calculates the additional quantities in the normal dialog mode, or as a background job. You can use the conversion mode to control whether or not the quantities can be manually overwritten.

Oil and Gas Quantity Conversion


The Oil Quantity Conversion or the Gas Quantity Conversion is used for calculating the additional quantities. Those functions calculate quantities based on the definitions in Customizing under Industry Solution Oil & Gas (Downstream) HPM Petroleum Measurement Standards Quantity Conversion Interface (QCI) Configuration, and on how the units of measure are set in the material master. For liquid HIM materials, additionally, a density and volume correction is carried out based on density and temperature values. For gaseous HIM materials (natural gas), a density, calorific and volume correction is carried out based on density, calorific, temperature, and pressure values. The oil and gas quantity conversion is carried out either as a background job or in the normal dialog processing mode using the Oil and Gas Quantity Conversion Dialog Box.

Default Values
In support of oil and gas quantity conversion, the system uses Default Values for the relevant quantity conversion factors. You can define those default values at plant, storage location or batch level per material, day, and time. The system always reads the default values from bottom to top, that means that the system first uses special values at batch or storage location level before using general values at plant level.

You can use the following transactions to enter default values: Enjoy transaction O3DEFAULTS "Old" transaction O3C1

Saving Additional Quantities


The quantities that are calculated additionally to the material document for the goods movement are saved automatically with the material document. Then, you can display the data using the physical inventory document. If differences occur between the physical inventory balance and the book inventory, you can access the additional difference quantities by using the material document.

Oil and Gas Quantity Conversion in the Sales Cycle


Use
In the sales cycle, the oil and gas quantity conversion is integrated in the rush order, the delivery, and the billing document (customer billing document). The oil and gas quantity conversion does not take place during order entry for standard orders.

Integration
This graphic shows how the oil and gas quantity conversion is integrated in the sales cycle.

Two-Step Plant-to-Plant Transfers with Gains and Losses

Use
In a company, goods movements do not only take place in the form of goods receipts and goods issues. Dependent on the organizational form of the company (for example, one using decentralized stock) and on the sales and marketing policies of the company, internal stock transfers may be necessary. Stock transfers can take place at three different levels: Stock transfers from company code to company code Stock transfers from plant to plant, for example: o Simple stock transfers from plant to plant in one step, in which the issued quantity of the issuing plant has to be the same as the received quantity at the receiving plant. Complex two-step transfers from plant to plant using a stock transport order which functions as an internal purchase order for the receiving plant and as an internal order for the issuing plant.

Stock transfers from storage location to storage location (in the plant).

This documentation only describes the two-step plant-to-plant stock transfer, because that area is the only area within the stock transfers that differs from the SAP Standard System.

Features
Two-Step Plant-to-Plant Transfer in the R/3 Standard System When you carry out a two-step stock transfer from plant to plant, you first post the removal from storage from the issuing plant. After the stock removal posting, the quantity of product to be transferred is put in the stock in transit (with a stock transport order), or, in the stock in transfer of the receiving plant (without a stock transport order); but it is cannot yet be used. In a second step, you post the placement in storage at the receiving plant. Only then is the transaction complete, and the quantity transferred can now be used. In the Standard System, you can carry out a two-step stock transfer from plant to plant: Using a stock transport order for goods issue postings in shipping (replenishment delivery) Using a stock transport order for goods issue postings in inventory management Without a stock transport order

Tracking Stock Transfers in the R/3 Oil & Gas System (Downstream) For stock transfers in the Standard System, it is only possible to assign individual goods issues and goods receipts to physical goods movements by using the stock transport order. As a result, the system does not calculate gains and losses. In the oil and gas industry, changes in quantity can, however, occur when bulk materials are moved (for example crude oil, fuels, etc.). That can occur, for example, when the material temperature at the receiving

plant is different than the material temperature at the issuing plant, and the material is thus subject to density changes during the shipment. To be able to monitor goods movements and to be able to determine any changes in value of the material that may arise (gains and losses), when activation occurs, the system tracks the goods movements of the material (see also Activating Goods Movement Recordings). The system automatically assigns a tracking number to the goods issue and goods receipt documents. You can use the tracking number to track the goods movements. The system automatically carries out the gains and loss postings.

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