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Global Trade Management

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Date created:
August 16, 2013

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 Global Trade Management

Purpose
In the trading environment, it is necessary to control and organize the flow of materials and services from vendors to customers. The principle of the business is to
match demand from the customer with supply from the vendor. This type of business is known as triangular business, principal business, or back-to-back
business. The industry defines this type of business as business where purchasing and sales are carried out in parallel, in the same trading department. For
example, you get a sales order from a customer, search for the best vendor to fulfil the customer's requirements, and issue a purchase order, all in one
transaction. You coordinate shipping, transportation, and customs clearance for the goods. The vendor then delivers the goods directly to the customer. The trading
company gets an invoice from the vendor, and bills the customer. Finally, you receive payment from the customer and make a payment to the vendor.

In the SAP system, this type of business process, in which sales and purchasing processes are carried out simultaneously, is defined as Trading Business.
SAP Global Trade's new object, Trading Contract, is used to handle this ordering process.

There are several types of procurement and sales expenses associated with trading business, such as inland freight, ocean freight, insurance, duty, and so on.
Trading charges linked to the Trading Contract can be processed by a new component, Trading Expense. The Trading Expense component is fully integrated
with the Trading Contract so that you can maintain purchase related expenses and selling related expenses centrally. Planned expenses can be entered in the
Trading Contract and accrued. Unplanned expenses can be linked to Trading Contract at a later stage when you receive invoices from service providers, freight
forwarders, insurance companies and customs offices. It is thus possible to assess accurate profitability as costs and revenue elements are linked to the Trading
Contract.
Subsequent transactions such as goods receipt, inventory management, goods issue, invoice verification, and customer billing are maintained in the standard
SD/MM components.

Implementation Considerations
The Global Trade component is a part of the standard SAP system and can be used in all business transactions, independent of the line of business.
Since Trading Business initiates both Sales and Purchasing processes, it is mandatory to maintain both SD and MM settings and Customizing.

Integration
The vendor and customer master, material master, conditions, sales transactions, and purchasing transactions must be in use if you want to use the Trading
Contract component.
For further information, see ;
Sales orders
Purchase Order

Features
The Global Trade component provides:
Trading Contract
Trading Execution Workbench (TEW)
Position Management
Trading Expense

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 Trading Contract
Trading contracts are documents in the SAP System that integrate multiple legal contracts between customers and vendors. With the trading contract, both sales
and purchase orders can be maintained using a single transaction.
Usually in a trading company, one person or department carries out both buying and selling procedures. The simultaneous sales and purchasing data entry
screen is necessary to avoid redundant data entries and reduce missed operations.
With one trading contract document, the system creates follow-on sales side document and purchase side document after releasing. In the contract document
header, you can maintain sales side data that is copied to each item line. Then you maintain purchasing data in each item line. You can create multiple purchase
orders to fulfill one sales order if necessary. Trading contracts are, therefore, sales-order-driven documents. Trading contract can be used as one-sided contract
such as purchase side only contract and sales side only contract. Using position management function, you can manage the material position and subsequent
process of one-side contract item.
The Trading Contract component enables you to implement various different business transactions for integrating sales documents and purchase documents. You
can, for example, create the following type of the trading contract:
Domestic trading contract
Import trading contract
Export trading contract
Off-shore trading contract (third-country deal)

Integration
The vendor and customer master, material master, conditions, sales transactions, and purchasing transactions must be in use if you want to use the Trading
Contract component.
For further information see Purchasing and Sales & Distribution

Features
The Trading Contract component is a center of trading business. It incorporates sales orders, purchase orders, and vendor billing documents for trading expenses.
Users can monitor the processing status of all subsequent transactions associated with the trading contract via extended document flow.
It also provides accurate profit simulation report, including all the costs and revenue elements, when you enter data in the trading contract.
After the deals are completed and all the data is transferred to accounting, you can use the trading contract number to check the actual profit.
The Trading Contract component provides support for the following:
Multiple units of measure
Multiple currencies
Trade pricing
Partner functions
Portfolio assignment
Open order/Delivery control
Incompleteness check
Status control and release check
Copy control
Text Control
Contract closing
Quantity-matching check
Risk management check
Document flow
Central output control
Vendor evaluation
You can use side panels in trading contract. Prerequisites for this are that you use the NetWeaver Business Client (at least version 3.5), and that a role that
contains the transactions of the trading contract is assigned to the respective users.
Once these prerequisites are fulfilled, the role SAP_BSSP_LO_SIDEPANEL must be assigned to the respective users, in transaction SU01.

Trading Execution Workbench (TEW)

In Global Trade Management, you often need to process several different kinds of transactions at the same time. The Trading Execution Workbench (TEW)
provides a central cockpit where traders can process trading contracts and their subcomponents, such as purchase orders and sales orders and follow-on
documents. In addition, TEW automates a large part of the data entry, making processing quicker, easier, and with fewer errors.

Integration

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 To use TEW, you must install SAP Global Trade.
In addition, you must also customize the standard functions of SD/MM that are needed for background processing.
You can call the Position Management and Trading Expense functions directly from the TEW.
The following illustration gives an overview of how various global trade functions fit together with the TEW.

Trading Execution Workbench

Features
Role-based layout of TEW is highly customizable to support different lines of business (for example, steel, oil, food, energy).
Smart functions anticipate which tasks you want to perform and suggest the appropriate source and target documents automatically.
You can process multiple documents on one screen (including creating deliveries, shipping notifications for customs clearance, posting goods issue, and so
on).
A document flow diagram helps you keep track of what follow-on documents you have already processed and what remains to be done.
The system remembers your selection settings from one session to another so you do not have to reenter them.
A message area on the screen displays all errors, warnings, and information messages that you have received during the current session.

Constraints
If you process a document in the TEW, you cannot use standard SD/MM transactions to make changes to the document because this can lead to data
inconsistency.

More Information
Trading Contract
Trading Expenses

Processing Documents in TEW

This procedure describes the steps involved in creating a follow-on document in the Trading Execution Workbench. This is meant only as an example. The actual
screen layout and selection criteria depend on how your company has maintained settings in Customizing. Note that you cannot create follow-on documents
(purchase order, sales order) for energy contracts, but can create single settlement requests for energy contracts by using enterprise services.

Procedure
Assume that you have an existing sales order and you want to create a delivery document for some or all of the items.
1. On the initial Trading Execution Workbench screen, choose the TEW mode that represents your line of business.
2. Enter the following selection criteria:
Group
This represents a group of steps, or tasks, involved processing a given kind of trading (for example, tasks involved in export, domestic, back-to-back trading,
and so on).
Step
This indicates the target document you want to create (for example, delivery document).
Mode
This indicates the action you want to perform (for example, create, change, copy with reference).
Prestep
This indicates the document that you want to use as your data source (for example, sales order).

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 3. In the Ranges for Selecting Source Documents section of the screen, select the parameters you want to use to search for the source document you want (for
example, all sales orders created by you during a given month). You can select as many parameters as you want in order to refine your search. As you select
each parameter, the system displays fields where you can specify ranges (for example, a range of materials, or a date range).
4. Choose Start selection.
The system searches for the appropriate source documents and displays them in the Document Flow area of the screen. You can select the Plus icon (+)
next to each document to see which documents have already been created for it. This shows you the extent to which the order has been processed.
5. Select the document you want from the list area.
Document header data is shown in a frame to the right of the Document Flow area, with the item lines in a frame below them. If the system displays more than
one sales order, the items for each contract are shown in a different color so that you can easily see which items belong to which order (for example, all items
for Sales Order A might be shown in green, and all items for Sales Order B might be shown in blue). You may need to expand the frame to see all the details.
6. Do one of the following:
If you want to process all items for a document, select the header data.
If you want to process only some items or a partial quantity of an item, select the item line(s) you want.
7. Choose Execute.
The system displays the appropriate screen for the data you selected. For example, if you selected an item for which you want to create a delivery, the Create
Delivery screen appears with the quantities copied from the sales order.

Note
Depending on the settings in Customizing, the system may perform the task in the background rather than display a data entry screen. In this case, you
simply receive a message indicating that the delivery document has been created.

8. You can make changes to the data as necessary. For example, you may want to create only a partial delivery, perhaps 500 tons of wheat instead of 700 tons.
9. Save the document.

Result
When you refresh the data, the document flow to the left of the screen is updated to show the new document.

Position Management
You can use Position Management in Global Trade Management to reduce inventory risk and lost sales.
Two functions exist to help you do this:
Portfolio Management: Using Portfolio Management you can control values that you entered when you were creating the trading contract. A special key is
assigned dynamically to the contract item. This key serves to optimize use of sales-side and purchasing-side quantities.
Association Management: You can use association management to create links (associations) between sales and purchasing data at item level. The system
tracks material position information, and creates links between sales and purchasing based on the key information, portfolio. You can maintain this link flexibly.
You create, change or delete this relationship during logistics document processing.
In addition the portfolio management enables you to classify automatically trading contract items into freely defined different buckets – the portfolios - which
belongs to your business strategy and processes. The portfolios can be used for reporting purposes or to control you business processes based on your
benchmark.

Portfolio Management
Purpose
Portfolio Management contains the function that monitors the item position. In Global Trade, portfolio is defined as a pre-defined selection group in order to make a
finer item classification possible. The main purposes of Portfolio Management are as follows:
To classify the items of the Trading Contract
To report similar product lines
To control important materials, countries, customers or vendors in view of risk consideration

Features
Following topics are provided for more detailed information.
Portfolio Type
Portfolio Table
Access Sequence
Portfolio Determination

Portfolio Type

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 A portfolio type is a model that represents contract item characteristics. This is the basis of the association partner selection. Portfolio type is made up of several
fields originating in Trading Contract. The characteristics of the type originate in the portfolio table.

Example
Suppose that you deal with coffee beans, and distinguished by the country of origin and crop year. This is because these elements affect your corporate risk
position based on pricing and delivery uncertainties. In this case, you set up portfolio type with the portfolio table that has country of origin and crop year. You can
create your own portfolio tables, if necessary.
About the Portfolio Tables, see
Portfolio Table

Portfolio Table
Definition
A portfolio table contains the combination of key fields that identifies an individual portfolio record. It is assigned to the access sequence that is used for searching
the record. Each record is created with this key combination, which makes the system search more effectively and quickly.
This table is technically the same as the condition table, which consists of the combination of the multiple key fields. When a portfolio record is created, data fields
are defined according to the portfolio table assigned to the access sequence. The following figure illustrates the relationship of the related elements.

When the data is maintained in a contract, the system checks if there is any suitable portfolio record.

Access Sequence
Use
An access sequence is a search strategy that the system uses to find valid data for a particular portfolio type. It consists of one or more accesses, which contains
the portfolio table. The system looks for a valid portfolio record according to the order of this sequence. This is assigned to each portfolio type with which you create
a portfolio record.

Features

The above figure illustrates the relationship between portfolio type and access sequence. When the system starts to search, it looks for the record to the first table
(most specific record). If the record doesn't match the first sequence criteria, it uses the next one. The search continues until the system finds the appropriate
record. There is a customizing parameter for optimizing this access.

Portfolio Determination
Purpose

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 Portfolio determination is executed when contract item and quantity are fixed. The system searches a record using the condition technique. For more information
about the condition technique, see
Introduction to the Condition Technique .

Process Flow
A portfolio record is searched for in the following way:
01. Portfolio determination process begins in order of the procedure, GT0001. The search begins the step with the lowest sequence number, in this case GT01.
Each portfolio type has an assigned access sequence.
02. In the access sequence G001, the key of the portfolio table 001 determines the responsibility, 0001 and the material group, GT01. The portfolio table is read
using this key.
03. When a record is found, for example the record 5542, the system proposes the result according to the determination strategy

Assign Portfolio

Use
Portfolio assignment is necessary for position management.
The system determines which portfolio to assign when you confirm a material, its quantity and value in an item line. You can specify the timing of portfolio
assignment in Customizing.

Procedure
1. In the trading contract overview screen, maintain data for the item and its quantity.
2. The system tries to assign a portfolio to the contract item. Depending on the settings in Customizing, you may see the portfolio selection list in a display
screen. To assign the portfolio manually, or to see the assigned portfolio, choose Goto -> Item -> Portfolio.
3. In the Portfolio tab, you can see the portfolio determination log. You can also check the key fields that are used as a selection basis.
4. If there are alternative portfolio records, you can use the Redetermine Portfolio function. If only one portfolio can be assigned, no portfolio redetermination is
possible.

Association Management

Purpose
Association Management is the function used to monitor and process document item links for an assigned portfolio.
The main purposes of association management are to:
· Create/maintain a document item link
· Update data relating to open quantities.
The following chart shows you an example of an item position and its transition.

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 Features
· Creating/maintaining a document item link
The system searches for the corresponding association partner list, based on the assigned portfolio. You can use the same portfolio to create new
associations between items.
You can maintain associations in both a trading contract and a logistics document.
In a trading contract you can call the association function either manually or automatically.
In a logistics document you cannot call the association directly from the document. You can maintain an association either separately using the Trading
Execution Workbench or using further inheritance to create a logistics document or using automatic adjustment of the association when changing the logistics
document.
For more information, see Association Maintenance
Updating open quantity information
Once a portfolio is assigned to a contract item, the system checks the item position and authorizes processing of the item and its associated quantity. For
more information, see Status Control and Release Check.

See also:
Processing Associations in a Trading Contract
Processing Associations in the Trading Execution Workbench
Processing Association
Generate Association Reports

Association Maintenance

Purpose
You can use the association function when you are processing a trading contract in one of the following processes:
· Creating or changing a contract
· Creating a new logistics document (only in sales processes)
· Changing an item quantity when processing logistics documents (only in the purchasing process)
· Maintaining an association independently using the Trading Execution Workbench.

Example
· Purchasing-side process
In purchasing document processing, the system checks the processed quantity. If an item quantity is changed in the document, the associated quantity can
be adjusted either automatically or manually.
· Sales-side process
If you create an association during trading contract processing, this relationship is passed on to the follow-on logistics document. If you process the trading
contract further, the system checks for an association record. During sales document processing, the system provides a screen for creating or confirming an
association partner item. Only selected association partners and quantities can be passed to the document.
· Creating an association from the Trading Execution Workbench
After creating a logistics document, you can create an association for a document item in the Trading Execution Workbench. When executing the process you
are taken to a screen where you can select association candidates. In this screen, you create a new association record. When doing this you must enter the
association quantity. This must not be greater than the open quantity of the items involved.

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 Processing Associations in a Trading Contract

Use
You can process associations after you have assigned a portfolio to a contract item. You can specify when association maintenance is to be called in Customizing.
It can be called both automatically (when creating an item) and manually.

Procedure

Create new association

1. After you enter a contract item and its quantity, you must assign a portfolio to the contract item.
If you have made the relevant setting in Customizing you are automatically taken to the screen for association maintenance.
To call the association maintenance screen manually, select an item, follow the path Goto → Items → Associations, and then select the tab page
Association.
2. A new window opens, displaying the contract item in the upper area and the associated item list in the lower area.
You can change association partner quantities directly. If you want to create an association for a candidate, select the corresponding item in the lower part of
the screen and choose Change entries.
3. Change the quantity in the New quantity field and then press Enter to confirm the change.
The changes are reflected in the displayed data.
4. Choose Copy data.
You are then taken back to the contract maintenance screen.

Process association
1. Choose Reassociate from the tab page Associations.
2. The contract item and the association partners are displayed.
You can change the association quantity in the New quantity field. Quantities that have already been passed on to follow-on logistics documents are not
displayed here.
3. Choose Copy data to confirm the changes.

Processing Associations in the Trading Execution Workbench

Use
You can process the association of an existing document using the Trading Execution Workbench (TEW). You can display and process the association
independently of any logistics processes.

Procedure

Create/change association
1. In the TEW initial screen, define the necessary parameters in the Task area.
Select a mode that corresponds to association maintenance.
2. Define the source document selection range, and choose Select.
The system lists source documents in the lower screen.
3. Select the item to be processed from the second group of documents.

Association is not possible at header level.

4. If you create a new association or want to change an existing one, choose Read data for association.
The association partners and candidates are transferred to the lower part of the association maintenance screen while the item to be processed is displayed
in the upper half of the same screen. For association partners the associated quantity is displayed in the field New quantity and you can change it directly. If
you want to create a new association for an association candidate, select the appropriate item and choose Change entries.
If you want to change the existing association data, choose Read data for reassociation. In this case only the list of association partners is displayed. You can
already make changes to the New quantity field.
5. Change the quantity in the New quantity field and choose Enter to confirm it.
6. Choose Save.

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 Display Association
1. In the TEW initial screen, define the necessary parameters in the Task area.
Select a mode that corresponds to association maintenance.
2. Define the source document selection range, and choose Select. The system lists source documents in the lower screen.
3. Select the item to be processed from the second grouping of documents.

Association is not possible at header level.

4. Choose Display association data. The selected data and all the association partners are copied to the screen area for association maintenance.

Delete association
1. In the TEW initial screen, define the necessary parameters in the Task area. Select a mode that corresponds to the association maintenance.
2. Define the source document selection range, and choose Start Selection.
The system lists source documents in the lower screen.
3. Select the item to be processed from the second grouping of documents.

Association is not possible at header level.

4. Choose Association data to be deleted.

The system displays the association partners. Select the associations to be deleted and choose Delete association.
5. Choose Save.

Processing Associations

Use
You can maintain associations during sales document processing, using the Trading Execution Workbench (TEW).
This function is called when you create follow-on documents.Before you are taken to the document maintenance screen the system asks you to check association
data. You must carry out the association step in full before you can proceed. However, if the document item is completely and uniquely associated this association
step is carried out automatically.

Prerequisites
· The selected document must have the status Released.
· Only a trading contract in which logistics follow-on documents are processed can be selected as a source document.
· When creating a contract, a portfolio must be assigned to the relevant document item.

Procedure
1. In the TEW initial screen, you select the necessary parameters in the Task areaand define the source document selection range.
The list of source document headers and source document items appears in the middle of the screen.
2. You select the source document headers and/or source document items.
3. The association maintenance screen opens in a separate screen.
Two different cases exist here:
a. The document item is complete but is not uniquely associated.
Association partners and quantities are displayed in the lower list. Now perform cross-referencing.
b. The document item is not completely associated.
Association partners and quantities are displayed in the lower list, as are association candidates. You can change association partner quantities directly. If you
want to enter a quantity for an association candidate you select the appropriate line. Choose Change entries and enter the quantity. Now perform cross-referencing.
4. To get to the screen for maintenance of logistics documents, choose Copy data.

Generate Association Reports

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 Use
The association status report shows you how far a contract has been processed and the association partners linked to the contract. The report also provides
historical association data. Two kinds of reports are available in association management. One is the quantity overview report and the other is the association
overview report.

Prerequisites
In each report, you can narrow your selection by entering a variety of selection fields such as contract number, article number and partner number. Additionally,
you can specify a particular document status.
· Association overview
The association overview displays all the associations linked to a trading contract item.
· Long-Short analysis
The long-short analysis can be performed on either the purchasing side or the sales side. The result is that you are provided with an overview of all the
current items that have not yet been completely processed.
Example:
You perform the report on the sales side. In the overview screen you can then display all the documents by month/document type/posting date. To open
folders you click on the hierarchy nodes. This allows you to see the corresponding documents and their association partners with quantities and value data, if
these exist. In this case the open quantity represents the “long item”, as it is not yet assigned to any sales item. By clicking on document numbers you can
move to the corresponding original documents.
If you execute the report for the sales side you receive all “short items” to which no purchasing item has been assigned.

Procedure
1. Use the following path: Logistics → SAP Global Trade Management → Association Management → Reports.
Select the type of report you require:
¡ Quantity overview
¡ Association overview
2. Enter your selection criteria and choose Execute.

Search For An Association Candidate

Use
An item with a portfolio can be considered an associated item. The system searches for an association candidate and creates a link based on the assigned
portfolio. This search is based on the assigned portfolio record and the options you selected in Customizing.

Prerequisites
If you want to monitor a material item during document processing you must customize the business process steps in the Trading Execution Workbench (TEW)
area accordingly. Perform association maintenance using the TEW.

Features
The portfolio for a contract item is determined using the condition technique. The system can then determine the corresponding association candidates. You define
your search strategy in Customizing and assign it to the association group.
You can choose from the following search strategies:
· Candidates all belong to the same period
Association candidates must have the same portfolio as the contract item.
· Candidates can belong to different periods:
Association candidates can have different portfolios, as these relate to different time periods.
Example:
At the change of the year you close one portfolio and at the same time create a new one for the next year. Use this search strategy to determine association
candidates for both periods.
· Hierarchical search
This is an optional function of the search strategy.
The following graphic describes the search strategy:

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 In the above example, portfolio record 0020 with the key fields (Div/Mat/Prod Hierarchy) can be associated with record 0027 and 0014, because these two
records have a common key in the more generic area “Mat”.

Trading Expenses
Purpose
The Trading Expense function in SAP Global Trade enables you to handle various kinds of costs and commissions incurred by a trading business. There are
various types of expenses in the trading environment, all of which are realized at different times and posted to different accounts, and these are often not
synchronized with the main flow of a trading contract.

Trading companies must control trading-related expenses, such as freight, loading charges, storage costs, insurance, customs duty and commission efficiently. It
is important to accurately assess costs, including purchasing costs and all trading charges associated with the trading contract.

The above figure describes the relationship between the trading contract process and the trading expense process.
The new process flow gives you more flexibility in maintaining expenses data. In trading contract processing, you can maintain planned expenses, which are
treated as pricing conditions in the contract pricing schema. You can reference them when you post expenses in other processes. When logistics documents are
being processed you can post expenses to a specific account. The vendor billing document is used for posting expenses. It has an additional function that
enables you to post expenses to both Accounts Payable and Accounts Receivable.

Implementation Considerations
Since planned expenses are included in contract pricing, you must ensure that the contract pricing schema is customized properly. If you process trading
contracts using the Trading Execution Workbench (TEW), you can also use it to process expenses. For more information see:
Trading Contract

Archiving Data in SAP Global Trade Management

&USE&
Data archiving can be used to remove mass data from your productive database so that the data can be used for analysis at a later date. Before beginning to
archive data, it is generally a good idea to check if you want to avoid creating data, aggregate data or simply delete data. Archiving is used for data that cannot be
avoided and that cannot simply be deleted.
Archiving data at the right time enables you to keep your database to a manageable size, making it faster to save data and thereby improving performance.
Ensure that you start your archiving project at the correct time, if possible immediately after your system goes productive. Archiving projects are often started after
a system has gone productive and a high percentage of the database capacity is already filled with data.

&INTEGRATION&

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 Data in SAP Global Trade is archived in the same way as in other environments. It is based on SAP archiving objects and generic SAP tools.
For general information, see the Introduction to archiving. The introduction provides answers to the following questions:
The Archiving Object?
Customizing?
How does archiving work?
What do I do in the archiving procedure?
Archiving objects from the following components are usually relevant:
● Objects from Logistics - General: LO, MM, SD and LE
● Cross-application objects: BC and CA
● Specific Objects for SAP Global Trade and Agency Business: LO (names begin with "W")
● Financials (if used): FI and CO

&PRECONDITION&
Before you start an archiving project, ensure that you have read the following documents (in SAPNet http://service.sap.com/data-archiving, at Media Center →
Literature).
● Data Prevention Checklist
The Data Prevention Checklist details options for reducing the volume of data in your system before you start archiving, for example, by aggregating data.
● Managing SAP Data Archiving Projects
Details general Best Practices to be observed when archiving data in an SAP system.

How Is an Archiving Project Run?

Use
You need to create a separate project for archiving. This is necessary for the following reasons:
It takes a long time before you can start to use the archiving productively (typically around six months).
You need an exact time plan because lots of individual steps have to run to a fixed time frame.
You need to involve several people/groups in the project, for example, employees from the IT department and specialist departments, archiving consultants
and auditors.
You need to clearly define the roles of the people involved, in particular for those who are only working part-time on the project (for example, employees from the
specialist departments).

Prerequisites
Before starting the archiving project, check the possibilities for data prevention using the Data Prevention Checklist (see SAPNet
http://service.sap.com/data-archiving ).

Procedure
Here is a brief outline of the project flow to give you an overview of the steps required. For more detailed information on project organization and flow, see the
documents Planning and Running SAP Archiving Projects (see SAPNet http://service.sap.com/data-archiving).
Here is an overview of the process flow:
01. Analyze the database and identify archiving objects.
02. Perform consistency checks between MM and FI.
03. Schedule regular jobs for deleting administration data (for example, spool data). For more information, see SAP Note 16083.
04. Organize a kick-off meeting for the project.
01. Establish contact persons.
02. Determine system environment.
03. Agree on a time plan.
05. Define demands on archived data and archiving objects.
06. Draw up order concept.
07. Consult the relevant SAP Notes.
08. Set up configuration and Customizing.
09. Perform archiving in the test system.
01. Test the archiving functions.
02. Start write and deletion programs.
03. Log archiving results.
04. Analyze and post process the list of errors.
10. Check technical concept.
11. Determine archiving cycle and variants.
12. Prepare production system for archiving.
13. Perform archiving in the production system.
01. Test the archiving functions.
02. Release productive archiving: perform write jobs.
03. Perform a data backup.
04. Plan and start deletion programs.
14. Document the project.

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 List of Important Archiving Objects
Use
Archiving objects play a key role in SAP's data archiving concept. The archiving object determines what and how data is archived. For general information about
archiving objects, see
Archiving Objects.
The table under Functions lists a selection of archiving objects that are normally used in SAP Global Trade projects. The list of objects is by not a complete list.

Integration
Archiving objects from the following areas are of particular importance to SAP Global Trade:

Logistics - General (LO)

Materials Management (MM)
Sales and Distribution (SD)
Logistics Execution (LE)
Basis (BC)
If you also use financial accounting, archiving objects from the following components are also important:

Financial Accounting (FI)

Controlling (CO)
Enterprise Controlling (EC)

Features

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 Archiving Object Description Component ID SAP Component
MM_MATNR Marterial Master Records MM-IM Inventory Management
MM_HDEL Archiving program for MBEWH, MM-IM Inventory Management
QBEWH, EBEWH (historical analysis
data)
MM_MATBEL Material Documents MM-IM Inventory Management
MM_INVBEL Physical inventory documents MM-IM Inventory Management
MM_REBEL Invoice documents MM-IV Invoice Verification
MM_EKKO Purchasing documents MM-PUR Purchasing
RL_TA Transfer orders LE-TRA Shipping
RV_LIKP Deliveries LE-SHP Shipping
SD_COND Condition records for pricing SD-BF-PR Conditions and pricing
SD_VBRK Billing documents SD-BIL Billing
SD_VBAK Sales documents SD-SLS Sales
WRECH Invoice lists LO-AB Agency Business
WBU Posting lists LO-AB Agency Business
WCI Customer settlements LO-AB Agency Business
WREG Settlement request lists LO-AB Agency Business
WZR Single settlement requests LO-AB Agency Business
WLF Vendor billing documents LO-AB Agency Business
WSI Expense settlement documents LO-AB Agency Business
WB2 Trading Contracts LO-GT SAP Global Trade
FI_DOCUMNT Financial accounting documents FI Financial Accounting
MM_ACCTIT Subsequent posting data for financial FI-GL-GL General Ledger Accounting: Basic
accounting interface Functions
PCA_OBJECT Line Items and Totals Records in EC-PCA Profit Center Accounting
Profit Center Accounting
(to Release 4.6A)
EC_PCA_ITM Line Items in Profit Center Accounting EC-PCA Profit Center Accounting
(as of Release 4.6A)
EC_PCA_SUM Totals Records in Profit Center EC-PCA Profit Center Accounting
Accounting
(as of Release 4.6A)
CO_COSTCTR Cost Center Data (all data, including CO-OM-CCA Cost Center Accounting
cost center master)
CO_ITEM CO line items CO Controlling
CO_ML_BEL Material Ledger Documents CO-PC-ACT Actual Costing/
Material Ledger
CO_ML_IDX Material Ledger Indexes CO-PC-ACT Actual Costing/
Material Ledger
COPA1xxxx Movement Data from Profitability CO Profitability Analysis
Analysis
IDOC IDocs BC Basis
WORKITEM Work items BC Basis

Comments/Notes:
Profit Center Accounting

As of Release 4.6A, archiving object PCA_OBJECT replaces objects EC_PCA_ITM and EC_PCA_SUM.

Specific Objects for SAP Global Trade and Agency Business

Use
Only one archiving object was developed especially for SAP Global Trade – this is WB2 for archiving trading contracts. As Agency Business is often used in
conjunction with SAP Global Trade, the archiving objects for SAP Global Trade are also important. For more information, see also
Archiving Agency Documents
The archiving objects for Global Trade and Agency Business are assigned to the LO component. The names of the archiving objects begin with "W". Other
objects whose names begin with ‘W‘ are also used in SAP Retail (for example, archiving object W_PROMO for retail promotions). These objects are not normally
relevant for SAP Global Trade.

Features
The following contains the archiving objects that have been especially developed for SAP Global Trade and Agency Business:

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 Object Description Component Description Available as of SAP R/3
WB2 Trading Contracts LO-GT SAP Global Trade Enterprise Global Trade 1.10

WRECH Invoice Lists LO-AB Agency Business 4.5A

WBU Posting Lists LO-AB Agency Business 4.5A

WCI Customer Settlement LO-AB Agency Business Enterprise Core 4.70

Documents
WREG Settlement Request Lists LO-AB Agency Business 4.5A

WZR Single Settlement LO-AB Agency Business 4.5A

Requests
WLF Vendor Billing Documents LO-AB Agency Business 4.5A

WSI Expense Settlements LO-AB Agency Business Enterprise Core 4.70

Archiving objects WCI, WREG, WZR and WLF are also used for subsequent settlement. If you use subsequent settlement, refer to SAP Note
180434 (Release 3.0D – 4.5B), which activates additional checks for the archiving of documents that are relevant for settlement (for
example, purchase orders, vendor billing documents). For more information, see
Archiving Volume-Rebate Arrangements .

Sequence of Objects in Archiving

For each project, you need to determine the relevant archiving objects individually. Which archiving objects are relevant, will depend on how your business
processes run and how you map these processes in SAP Global Trade. The growth of data in individual tables can vary considerably from production system to
production system.
Once you have determined the relevant archiving objects, you need to establish the order of the objects for your project. There is no set method for doing this. You
must always agree the order you decide on with the specialist departments concerned.
The following table shows some sample archiving objects together with the recommended order for archiving:
Group Object A of the Object B of the Object C of the Object D of the Recommended Recommended
Group Group Group Group Order Within the Order of the
Group Groups
1 MM_MATBEL MM_INVBEL MM_REBEL MM_HDEL
2 MM_EKKO 2 before 3,
2 before 13
3 RV_LIKP SD_VBRK SD_VBAK SD_COND A, B, C, D
4 RL_TA
5 WRECH 5 before 6
6 WBU WCI 6 before 7
7 WREG 7 before 8
8 WZR 8 before 9
9 WLF WSI
10 MM_ACCTIT 10 before 11,
10 before 15
11 FI_DOCUMNT 11 before 12
12 PCA_OBJECT 12 before 13
13 CO_ITEM CO_COSTCTR CO_ML_BEL CO_ML_IDX A, B
14 WB2
15 MM_MATNR

Notes:
Suggested order within the group

In the case of groups in the table containing objects which are underlined, we recommend that you archive the objects in the order they are shown.
In group 13, for example, CO_ITEM should if possible be archived before CO_COSTCTR, whereas the order of CO_ML_BEL and CO_ML_IDX is
interchangeable.

Recommended Order of the Groups

An entry in this column means that all the objects in a group should be archived before the objects of another group. Therefore group 2 should, if
possible, be archived before group 13.

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 Dependent Archiving Objects
When planning an archiving project, you must ensure that no dependent data is archived when it is still required by a productive system. By selecting a suitable
sequence for archiving, you can reduce the number of required checks, thereby improving the performance of archiving.
For information about the recommended archiving sequence, see the network graphic for the object in question (display from transaction SARA) and the SAP
Library. As mentioned previously, the sequence you select must always be agreed upon with the specialist departments whose data is being archived.
This document cannot be used to describe all data dependencies. The following general dependencies and conditions are worth mentioning:
Transaction data
should be archived before master data.

Master data (for example, material master records) can normally only be archived if it is no longer used in transaction data (for example, purchase
orders). In some archiving objects for master data (for example, SD_COND), you can deactivate checks for existing transaction data.

MM transaction data
should be archived before the SD transaction data.

In SD archiving, you can activate checks for existing MM documents.

Deliveries
should be archived before the order and billing documents.

Order data is used when delivery documents are displayed. Deliveries cannot be displayed if the order document is no longer available.

General SD data

The following is valid for the archiving sequence in SD:

Delivery data should be archived first.

When archiving other SD documents, you should use the opposite sequence to the business process.
SD billing documents
should be archived before SD order data.

If this is not done, it may be the case that the billing documents can no longer be displayed as the document with the referenced text is missing.

SAP Note 129310 (Release 3.0D - 4.5B) provides information about correctly referencing texts when using the SD archiving objects
RV_LIKP, SD_VBRK, SD_VBAK.

FI
/CO data can normally be archived independent of the MM and SD data.

Exceptions:

In your system, CO data is updated from the MM data.

If this is the case, you should archive the MM data before the CO data.

Data for subsequent MM postings is updated in your system.

In the standard system, data for subsequent postings in MM (object MM_ACCTIT) is active. Data for subsequent postings in MM should be
archived before other FI data.
Remarks:
If required, you can deactivate the generation of data for subsequent postings. This document contains detailed information about object
MM_ACCTIT. See also SAP Note 48009.

Differential Invoices
Differential invoices enable you to avoid the more common, but also more complex, procedure of rebilling both in the Billing area of Sales and Distribution (SD)
and in Procurement and Logistics.
Billing in Sales and Distribution (SD): The key function of this process is that you can repeatedly bill the full amount for a delivery or an order. The business
background of this function lies in commodity trading. The final price and the final billing document for the delivered goods are normally determined weeks or
months after the loading process. A long-term average value based on the price quotations for the commodity is created during this period to take into account the
price risk of the deal. You can also redefine the quantity and quality of goods. Alternatively, it is common practice to issue early on a provisional invoice shortly
after loading that is based on probable values for price, quantity, and quality. Differential invoices can be created at any time between the provisional and the final
billing document.
Logistics Invoice Verification (MM): The creation of differential invoices enables you to create and check these kinds of multiple expense invoices for a goods
receipt.
In both cases, the relevant items can be priced using standard pricing and using the integrated commodity pricing engine (CPE), which has been enhanced
further.
The functions for differential invoices by the following business functions:
Contract-to-Cash for Commodities (LOG_SD_COMMODITY) – differential billing in Sales and Distribution (SD)
Procure-to-Pay for Commodities (LOG_MM_COMMODITY) – differential invoicing as a process in the logistics applications of Purchasing, Inventory
Management, and Logistics Invoice Verification

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 Invoice Forecasting
The intention of the Invoice Forecasting Worklist (IFW) is to be able to have a real-time overview of all current outstanding contracts that need to be invoiced or
paid, or where we expect to receive invoices and to pay these. Timeliness plays an important role as any physical movements involve high quantities and
values. So a commodities trading company is keen on invoicing any call-off as soon as possible according to the terms given in the contract. The user is to be
able to access the main invoicing transactions from within the report.
The IFW is a report that lists all contracts and any related invoice- and payment data. The complexity rises with having multiple deliveries and movements per
contract, multiple invoices per delivery (provisional, delta, and final invoices), multiple price condition records, and a flexible approach in handling qualities (bill of
material or pricing trading contracts in Agro, batches in Mining, quality figures in Oil appends for oil products). For more industry specifics for IFW, see below.
As outlined above, there are various reasons that make the IFW a required tool in the commodities trading business.
In summary, the IFW covers the following market requirements:
Prices of commodity contracts are based on market prices
Market prices are changing daily (and also hourly!)
Final contract prices are not known until some time (days!) after the change of ownership
Price is an average over pricing period
Foreign exchange (FX) and FX period to be considered
Create (provisional) invoice as soon as possible (once pricing periods are closed)
Flexibility to create differential invoices (as many as needed) until creation of final invoice
Prices can still change after issuing the first invoice: Update of quantity / quality / market price / differential invoices

Prerequisites
The functions IFW item relevancy determination, IFW update, IFW status determination, and IFW simulation MM and SD need to be configured properly to be able
to use the full functionality of the IFW process. For the settings in Customizing see Invoice Forecasting Worklist.

Process

A. Contract creation
B. BoL (event „Bill of Lading“) earliest time to run simulation
C. Earliest invoice date Invoice 1 (provisional invoice)
D. Invoice due date Invoice 1 (provisional invoice)
E. Payment due date Payment 1
F. Quality finalized
G. Earliest invoice date Invoice 2 (final invoice)
H. Invoice due date Invoice 2 (final invoice)
I. Payment due date Payment 2
The figure shows certain events along the time axis that apply to a contract and the follow-up billing activities. When the commodity contract is created, either as a
sales or a purchase document, the price is not known. The price depends on the market price at the future date of the bill of lading (BOL) averaged over a given
period. The BOL date generally corresponds to the date of the goods movement posting. The price is known only when the pricing period is closed, that is, when
the system date lies after the pricing period end date.
If foreign currencies are relevant, the foreign exchange (FX) rate also needs to be averaged over a time period. So, the first (provisional) invoice can be created
only when the pricing period is closed, the FX rate period is closed, and the FX rate is known. In general, the payment due date occurs within a certain time
period after the first invoice date (Delta 1 in graphics). In general, the details for the price end, invoice due date and payment due date can be extracted from the
pricing formula, together with certain pricing relevant events (such as BOL date).
Process Steps

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 1. Creation of a commodity contract.
2. In the background, follow-on documents such as purchase order (MM) or Sales Order (SD) are created, based on the commodity contract.
3. Since follow-on documents are the start document for the IFW, a goods receipt or a delivery are created based on the purchase order (PO) or sales order (SO).
The goods receipt must be posted with transaction Goods Receipt (MIGO ) and the delivery (and goods issue) must be posted with transactions Outbound
Delivery (VL01N) or Outbound Delivery Single Document (VL02N) for updating the IFW tables.
4. The user can potentially use the IFW report to analyze the status of the commodity contract
5. Additionally, the IFW forecasting run can periodically recalculate the amounts of the potential invoice based on the current available data (current prices,
current dates).
6. Perform follow-on activities for the commodity contract such as execution of invoice verification or creation of a billing document.

Result
As a result of the IFW process, the user has a current view of the invoices in the system and is able to perform follow-on activities in a timely manner.

Example
Companies that buy and sell commodities generally handle high volumes and high values of the materials involved. In general, we call the main business
“Commodity Management”, which includes not only trading, hedging and exposure management, but also the logistics part of their value chain. Since we deal with
high value, special attention also needs to be paid to back-office handling of invoicing, invoice verification, and payments. Of central importance in the commodity
business is, of course, the handling of commodity prices. These are based either on (long-term) contracts with business partners or on current and future market
prices.
Often, prices are based on a date in the future, usually the date of ownership change, which is not known when a contract is made. For example, the price for a
commodity received from a customer is attached to the market price of that commodity averaged over a period of time around the bill of lading (BOL)
(corresponding to the date of ownership change). Even after receiving or issuing a call-off of a contract, the final price may not be known because it depends on
the final market price averaged over a period which is not yet closed. The quality determines surcharges or discounts, but the real quality is only known several
days after the receipt or issue, after receipt of the official quality report. Finally, quantity adjustments may happen.
So, the period for final price determination generally long; up to one month or more. Generally, travel times for any commodities are also quite long. An oil tanker
takes 30 days from Saudi Arabia to the U.S. Gulf coast, and similar travel times apply to shipments of agricultural products from South America or Asia to
Europe.
Since a company cannot wait until the final price is known, it is required to be able to invoice an amount before the final price is known. So immediately after
goods issue, a provisional invoice is issued based on the best known price of the delivery (call-off) of a contract. Once the price is updated, we can issue a
differential (delta) invoice that only invoices the remaining value to the customer. After a given closed period (pricing period), the final price is known and a final
invoice is sent out. The payment date is generally also based on the BOL date. It can be within the pricing period around the BOL, or after the final pricing date. It
is the final date when a given delivery has to be paid. A company needs to receive the vendor invoice very soon, because otherwise penalties have to be paid if
payment happens too late. Occasionally, the company tries to initiate its own payments as late as possible, while being keen on receiving payments as early as
possible. Similar steps are required on the receipts side, where we need to run the invoice verification process at an early stage and need to report on any
required outstanding payments.
Uncertainty in prices is an important topic in Commodity Management, especially when market prices are highly volatile and fluctuate. This price volatility
increases the financial risks concerning any physical commodity transactions. Any financial risks have to be minimized by using certain financial instruments
called hedging tools. For cross-border transactions, foreign currency risks also have to be considered.

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