Swap Sales in Chemical Industry SAP Best Practices for Chemicals

Swap Sales in Chemical Industry

SAP Best Practices for Chemicals

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose • This scope item deals with Swap Sales process involving two companies, external to each other.

• The sale order swap process is based on a contract between two Companies/manufacturers to supply similar product to customer of one company whose location is in the same region as the other. The basis for the SWAP process is to avoid logistics costs to the benefit of both the companies.

Benefits• By performing swap sales with partner companies in the industry, shipment of chemicals is handled

locally for customers, reducing travel time and expense.

Key Process Steps• Supply material to end customer via swap partner

– Creating swap sales order, requisition, approval, delivery processing, picking, goods issue, and billing

• Supply material from own plant to swap partner’s customer– Creating sales quantity contract, delivery processing, picking, goods issue, and billing


Required SAP Applications and Company Roles

Required SAP Applications SAP ECC 6.00 enhancement package 7

Company Roles Purchaser Sales Administrator Purchasing Manager Warehouse Clerk Billing Administrator Accounts Payable Accountant


Detailed Process Description

Swap Sales in Chemical IndustryThe ordering company enters into contract with the supplying company and receives an order for product from its end customer. The ordering company hands over the requirement (by creating a Purchase Order) to the supplying company that is defined as a vendor, and then bills the end customer. The end customer receives an invoice from the ordering company and the Supplying company sends an invoice based on contract price to the ordering company.

The supplying company enters into contract with the ordering company and sends an order for its customer. A Sales Order is created in the Ordering company and swap material is delivered to the supplying company’s customer. Billing is offset with an invoice from the supplying company.

A reconciliation is carried out at the end of month or quarter for final settlement between the two companies.

For the ordering company, the scope item focuses on: Creation of the Purchasing Quantity Contract Creation of a sales order for the end Customer Creation of a Purchase Request and converted into a Purchase Order Posting of Statistical Goods Receipt Creation of Delivery and posting of Goods issue Creation of Billing Document for end customer Verification and posting of Vendor Invoice

For the supplying company (your company as swap partner), the scope item focuses on: Creation of Sales Quantity Contract Creation of Customer Material information Creation of a Sales order Creation of Delivery and posting of Goods issue Creation of Billing document for ordering company

.

Ordering Company in this scope item refers to SAP Best Practices Company

Code 1000


Supply Material from End Customer from Swap Partner

Supply Material from Own Plant to Swap Partner’s Customer

Process Flow DiagramRefurbishment Management

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Create Purchasing

Quantity Contract

Supply Matl to End Customer from Swap Partner

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Create Swap Sales Order

Assign Requisition and

Create PO

Approve POs (Optional)

Statistical Goods Receipt

Delivery Processing

Picking (Optional)

Post Goods Issue

Billing

Invoice Verification

AP- Accounts

Payable (158)

Create Sales Quantity Contract

Create Customer Material

Information (Sales

Admin_FM)

Create Sales Order

Delivery Processing

Post Goods Issue

Billing

Picking (Optional)


Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

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Ext

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Business Activity / Event

Unit Process

Process Reference

Sub-Process

Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Proces

s

Existing Version /

Data

System Pass/Fail Decision


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Swap Sales in Chemical Industry SAP Best Practices for Chemicals