Commodity management

[nikunjprajapati]

Dear Team,

I am very new to commodity( SAP Treasury and Risk Management).

Request you to help me on the same. If any material or process will help me to understand the SAP commodity management.

Thanks in advance.

Regards,

Nikunj Prajapati

[Former Member · Accepted solution]

Hello Nikunj,

SAP Commodity Trading and Risk Management (CTRM) was delivered from EhP6 onwards with complete integration to Logistics side with TRM. Commodities Procurement and Sales are now divided with Integration to CPE - Commodities Pricing Engine. All your POs / SOs and the subsequent process like MIGO/Invoice have been integrated with CPE, meaning you have the ability to calculate the commodities prices  based on various quotations.

The Integration is seamless with Treasury for Risk Management. Exposures arising from logistics - from PO/SO/MIGO/Invoice are automatically created/updated in TRM and are available for Hedge Accounting. Apart from this the Commodity Contracts also support Differential/Provisional Invoices.

You can check the overview of this functionality here : http://www.sap.com/solution/lob/procurement/software/commodity-management/index.html

Differential Invoicing in the Commodity Procurement Process - Logistics Invoice Verification (MM-IV-...

You need to activate Business functions from Ehp6 and 7: LOG_MM_COMMODITY and LOG_TRM_INT_1

for the Integration between Logistics and TRM. Also you need to activate other TRM related BFs from SFW5.

A lot has been developed around this space in EhP6 & 7 - for example configurable Parameters & Formulae (CPF), Derivative Contracts Specifications for handling Market Details for Market data management of Commodity Derivatives (DCS). You can find this info on release notes of EhP6 and 7

Regards,

Nikhil

[nikunjprajapati]

Thanks Nikhil and Grigoriy. I have hard copy of SAP press book but currently working from Client location so difficult to have a look on that. Any other soft copies or help available of SAP press?

[grigoriy_babitskiy]

Also take a look at SAP Press: SAP Treasury and Risk Management