Volume & Profitability Nordic Pricing Workshop 26 - 28/9/00 Jason Box Tom Kristiansen

1. Volume & Profitability Nordic Pricing Workshop 26 - 28/9/00 Jason Box Tom Kristiansen

2. Analyse Scope additions that were approved - Enable design specification to be agreed and confirmed. Recurring Configuration - Obtain confirmation from Affiliate for particular configuration settings, Stripes to take the lead Awareness of Pricing Data Conversion - what Price Conditions, Access Sequences & Tables are available for use Translate pricing design to facilitate resulting Data conversion - Derive which conditions and tables will be used for all scenarios by business line - log follow up issues. Set guidelines for data conversion deadlines for each Affiliate and each Test Iteration & Go-Live Wrap up meeting to confirm Price Conditions and Tables to use for data conversion Pricing Objectives Pricing Administrator

3. Stripes Central Design analyst for Script groups Base Price Prices conditions, Discounts & Surcharges, Rebates, Retro Billing Reference costs, (production, Terminal Handling and Secondary Freight) Formulae Pricing Sales (not purchasing or exchanges) Margin analysis workflow approval & Margin Table ZPCON. Data Conversion Track design/ABAP Analyst - Stripes Central Local Affiliate - Exxon & Mobil Local Pricing Data Conversion Pricing Analyst to cover Exxon & Mobil Fuels Marketing & supply & Lubes. Functional acknowledged Pricing Experts in each relevant functional Business Lines see overleaf for which Business lines will be covered. Recommended Participants Pricing Administrator

4. ExxonMobil Pricing - Functional Focus • This workshop will cover three days, focussing on new Agreed T3 scope re-design, recurring configuration and present the stripes pricing design to enable the mapping process to begin for data conversion. • Retail Fuels • I&W fuels & Other & LPG • Supply Sales & Formulae Pricing • Lubes - I&W & Retail to include Asphalt. Covering also InterCo & Supply lubes Pricing Administrator

5. VPPR - Script Groups Covered The following core Script groups will be covered in this workshop: • VPPR02 - Base Prices & Retro billing program for price adjustments • VPPR03 - Pricing structures (recurring config area) • VPPR05 - Price Discounts • VPPR12 - Price surcharges • VPPR07 - Freight Conditions (revenue and Ref cost freight) • VPPR04 - Cost Elements Transfer Price, Terminal Hndl, Production Cost • VPPR10 - Rebate functionality - future workshop to address this in early Oct! • VPPR09 - Manual Pricing conditions • VPPR13 - Taxes, Duties and Vat & compulsory stock (Focus area for T3) • VPPR11 - Pricing reports & Price Control reports • VPPR06 - Formulae Pricing for Sales (not Purchasing or Exchanges) • VPPR14 - Margin Analysis workflow • VPPR16 - Lubes Product costing & IABP Pricing Administrator

6. VPPR - Script Groups Not Covered This workshop does not cover the following Price script groups, these will be covered seperately: • SUXX - Fuels Transfer Pricing maintenance • VPPR17 - Archiving for price conditions • VPCM - All customer Master Scripts • VPMS01 - Aviation Fuels • VPMS02 - Marine fuels • VPPR05 - Cards & coupons • VPPR08 - Pricing Interfaces • VPPR07 - Marine Lubes • VPPR01 - Euro conversion program • MS profiles Roles Pricing Administrator

7. OVERVIEW SESSION 09:00 - 11:00 Pricing overview session DETAILED SESSIONS 11:15 - 12:15 Recurring configuration (price procedure determination - Retail, I&W & Supply & Refining, I&W Marine) 12.15 - 13:15 Lunch 13:15 - 14:15 Recurring Configuration - Margin Table workflow & control Variants for price control reports (Audit trail/Margin violation) 14:30 - 16:30 Supply detailed pricing session to include Formulae Pricing. Agenda - Day 1 - fuels focus Pricing Administrator

8. 09:00 - 11:00 Retail Detailed pricing session - condition type mapping. 11:15 - 12:00 Confirmation of the price procedure determination - Retail, I&W & Supply & Refining, I&W Marine) 12:00 - 12:45 Lunch 12:45 - 15:45 I&W Fuels including LPG & Marine fuels condition mapping & Retro Billing. 16.00 - 17:00 Scope addition - Tromsoe design Agenda - Day 2 - fuels focus Pricing Administrator

9. 09:00 - 10:30 Pricing overview session 10:45 - 11:45 Scope additions - Lubes Environmental Tax for Nordic cluster 11.45 - 12:30 Lunch 13:15 - 15:45 Lubes detailed pricing workshop - condition type mapping including IABP price lists and InterCo pricing. 16:00 - 16:45 Recurring configuration (price procedure determination - Lubes including Supply lubes & InterCo) 17:00 - 17:30 Lubes Margin Table workflow & control Variants for price control reports (Audit trail/Margin violation) Agenda - Day 3 - lubes focus Pricing Administrator

10. Nordic Agreed - Scope Additions • Norway local tax for deliveries to Tromso Kommune (100 customers based on 4 digits of the post code) based on a rate per unit on ADO/Gasoline. • Lubes HT excise duty adjusted price. Excise duty Net or gross? • Lubes environmental tax for Finland : to be incorporated into the lubes pricing procedure, can we use the ESAF condition? • Lubes environmental tax for Norway : to be incorporated into the lubes pricing procedure, can we use the ESAF condition? • Lubes environmental tax for Mobil Countries Sweden & Denmark? Pricing Administrator

11. Recurring Configuration • Price procedure Determination table for all Sales Areas and Finance Inter Co. Sales Orgs • Workflow Margin analysis - Calendar settings and re-route default timings & Build ZPCON Table for Margin analysis • Rebate Sales Area tables (to be addressed in seperate workshop as will be the Account determination) • Variants for Control reports, Rebates, Price audit trail, Margin Violation and margin table • Price Conditions that require 100% Ref and prices set to Zero used by Nordic. • Any additional Formulae pricing quotations • Printed price conditions text - Table YVCTD • JV issues? Pricing Administrator

12. Confirmations: The technical specification for the scope additions to be complete so that Stripes can immediately start the design. Recurring config to be confirmed with the Affiliate, completed to a degree that this config can be entered immediately when back in keiberg. All table entries not supplied, then dates agreed for returns to Keiburg. Significant progress to be made in confirming which Conditions types and Price Tables will be used to meet their business needs, all exceptions to be logged by data conversion for follow up. Any other follow up items on key issues to be agreed. Wrap up Session Pricing Administrator

13. Access Sequence Condition Type Condition Tables Condition Records Pricing Components Pricing Procedure Pricing Administrator

14. Condition Tables How do these different Elements fit together? Pricing Procedure Z00001 Retail Z00002 I&W ...... Condition Types ZA01 ZB04 ZC21 ...... Access Sequence SalesOrg/../Mat.... SalesOrg/../Cust... ...... Pricing Procedure determined using: Sales Organisation Distribution Chan. Division Document Type Customer Type Condition Record MatNo.: 100004 Rate: 236 EUR ...... Sales order Pricing Administrator

15. Access Sequence Condition Type Pricing Procedure Condition Tables Condition Records The Pricing File Cabinet Pricing Procedure Z00001 ZA02 ZB02 ZF02 1 Customer/ Material 1 Customer/ Material 2 Plant/ Material 3 ......... 2 Material 3 ......... 3 Material Pricing Administrator

16. Z00001 Retail Direct Sale Used for Retail Sales to Dealers under Direct Sale set- up in E(S) & EA Z00002 Industrial&Wholesale Used for I&W Sales of Fuels and Specialities & for inter-company sales Z00003 Consignment Returns Used for Return of products from dealers under commission set-up in EAG Z00004 Exchanges Used for exchange contracts with Esso partners Z00005 Returns Used for non consignment return w/o reference to billing document Z00006 Debit/ Credit notes Used for creation of debit and credit notes w/o reference to billing document Z00007 Samples Used for free of charge deliveries Pricing Procedure List of Pricing Procedures (1) Pricing Administrator

17. Z00008 Credit & Debit Consignment Used for creation of debit and credit notes for consignment sales Z00009 Returns Consignment Lubes Used for lubes consignment sales returns without reference to billing document Z00010 Returns Direct Lubes Used for lubes direct sales returns without reference to billing document Z00011 Supply Sales Used for all supply sales Z00012 Non Product Used for Non Product sales Z00014 Lubes Used for lubes direct sales Z00015 Retail Agency Used for retails sales to dealers under Commission Agent set-up Pricing Procedure List of Pricing Procedures (2) Pricing Administrator

18. Z00016 Lubes Consignment Used for lubes consignment sales Z00017 Rebate Settlement (Direct) Used for settlement of rebate agreement for direct sales customers Z00018 Rebate Fuels Settlement-Agency Used for settlement of Fuels rebate agreements for Commission Agent customers Z00019 Rebate Lubes Settlement-Agency Used for settlement of lubes rebate agreements for Commission Agent Customers Pricing Procedure List of Pricing Procedures (3) Pricing Administrator

19. ZAxx: Base prices ZBxx: Discounts ZCxx: Surcharges ZDxx: Taxes ZFxx: Costs ZGxx: Debit/credit note specific pricing ZHxx: Rebates Condition Type Condition Types Pricing Administrator

20. Price Condition Types ZA01 I&W Gross Price ZA03 Lubes List Price ZA05 Supply Base Price (no SAP Table) ZA07 Net Price ZA08 Net Price Lubes ZA13 Non Product Price Forward Price Differential ZC06 Forward Price Differential Condition Types that can be changed at Order Entry time: I&W, Lubes Pricing Administrator

21. Order Pricing Administrator

22. Condition Type Pricing Administrator

23. Condition Type Pricing Procedure Condition Records Pricing Administrator

24. Access Sequence Pricing Administrator

25. Condition Tables Pricing Administrator

26. Condition Records Pricing Administrator

27. Pricing Administrator

28. Pricing Administrator

29. Retail Consignment Pricing Procedure Retail Pricing Administrator

30. Common Process Flow - IPS Service Station with Retail Agent Daily Mofuel Sales at SST HEAD OFFICE Customer Account Daily Card Sales at SST Inventory Tax Consignment Stock daily net cash call (cash sales - dealer reimbursement ) monthly commission payment Daily Mofuel Sales file contains Pump Price per product per site Pricing Administrator

31. Retail Direct Pricing Procedure Pricing Administrator

32. I&W Fuels Pricing procedure I&W Pricing Administrator

33. Lubes Pricing Procedure Lubes Pricing Administrator

34. Supply Sales Pricing Procedure Supply Pricing Administrator

35. Pricing Activity Administrator (MS01) Creates contracts, orders, credits, debits, returns Enters manual pricing elements in orders/contracts Runs pricing reports, issues customer price lists Enters/maintains all pricing elements in SAP tables Creates/maintains/settles rebate agreements Runs interface and corrects interface data errors Runs the retro-billing process as required Maintains manual log of all supervisor approvals to entries/changes to pricing SAP tables Verifies prices/Platt’s/discounts are correct Common Pricing Roles Pricing Administrator

36. Pricing Activity Negotiator (MS02) Creates contracts, orders, credits, debits, returns. Enters manual pricing elements in orders/contracts. Views pricing data Generates ad-hoc pricing reports, if needed Pricing Activity Supervisor (MS03) Approves the price entries & rebates via approval on release Approves at order / contract entry via approval at order / contract release Approves price changes outside of the agreed margin tolerances (for I&W and Lubes) Reviews price audit trails, order and contract entry as well as change reports Common Pricing Roles - Profiles Pricing Administrator

37. Calculates the Gross Margin of each contract or order created after Transfer Price, Contribution after Handling & Secondary Freight. Compares the calculated margin with user maintained Unit threshold rates stored in a ‘Margin Control Table’ (ZPCON) Blocked orders require price approval from supervisor or manager to agreed Stripes Doag Levels via Workflow! Control reports daily Quotation tool available in SAP - this allows you to simulate price changes to see impact on the margin, saving this as a quotation does not create a formal document in SAP - create order w/ref to this quote price. Stripes Margin Analysis Workflow Pricing Administrator

38. Margin Check Product: 101422: Margin Table Margin Calculation: e.g. Base Price - Discounts + Surcharges - Cost Elements - Rebates accruals - Excise Duty - Comp. Stock = Margin after handling and delivery costs Pricing Administrator

39. Delivery creation Delivery creation Delivery creation Workflow - Margin release / reject Price Negotiator / Price Administrator Case 1 Y2 Order / contract creation Order / contract creation Supervisor Level 2 Order / contract creation Approve Delivery could be created Need approval Need approval Case 2 Y3 Case 3 Y4 Reject Send back a WF message B/L Manager Level 3 Reject Send back a WF message Manager Level 4 Delivery blocked Delivery blocked Pricing Administrator

40. What is it ? A feature in SAP-R3 that automatically compute and generate credit notes for deferred discounts given to customers based on actual sales When do we use it ? Examples .... Volume incentives to encourage customers to buy more Commission payment to agencies based on actual sales Year-end bonus which are dependent on actual sales Where do Stripes use it: Retail Commissions, Lubes & I&W fuels & Asphalts Stripes Rebate Functionality Pricing Administrator

41. Rebate agreement creation Standard order entry and processing Standard billing process Rebate Agreement settlement Rebates processing : overview Pricing Administrator

42. Types of Rebates Customer / MaterialGrouping C C Cumulative S T I I Individual S T CalculationMethod Standard Step/Threshold Possible grouping options :Customer grouping : Sold-to, Ship-toProduct grouping : Material Code, Volume Rebate Group (PH3), Packaging Type Pricing Administrator

43. In Retro-active billing an existing invoice is re-priced with the original pricing date (normally this date is in the past). The pricing date is the date specified in the pricing condition type (service rendered date, billing date (= GI-date), or order date) Only if a price condition record has been changed or created retro-actively it is relevant for Retro-active billing Retro-active billing is carried out individually for all items of the invoice A credit or debit memo request can be automatically created for differences between the “original” invoice and the retro-active billing “invoice” Retro-Active Billing Functionality Pricing Administrator

44. Retro-active billing Invoice 1 Invoice 2 Qty. X Price = Value 100 L 2,00 200 DEM Qty. X Price = Value 50 L 2,00 100 DEM Invoiced price 2,00 DEM/L Negotiated Price:1,90 DM Retro-active price 1,90 DEM/L Time line X Retro billed invoice 2 Retro billed invoice 1 Qty. X Price = Value 100 L 1,90 190 DEM Qty. X Price = Value 50 L 1,90 95 DEM  10 DEM  5 DEM Remark: The program checks the Net value NOT the Base price Credit note request Qty. X Price = Value 100 L 0,10 10 DEM (Reference Invoice 1) 50 L 0,10 5 DEM (Reference Invoice 2) ------------ 15 DEM Pricing Administrator

45. Price List of all condition records (price book) YVPRIBOK Condition types by Customer/Sales Representative/ YVPRIREP Price Validity Expiration YVPRIEXP IABP Analysis/List (Lubes only) YVVPBP01 Formulae re-pricing tool YVFORMRP Audit Trail Report of Price Changes YV16ACHD Margin Approval Table Changes YVMRGTBL Margin violation Report YVMRGVIO Audit Trail Report of Rebate Changes YVVPRB01 Rebate Settlement Report RV15C001 Quotation Table Changes YVPQTTBL Price Dependency Report YVPRIDEP List of changes to Contracts/Orders YVCHNG01 List of New contracts/Orders YVOFCR01 Online & Control Price Reports Pricing Administrator

46. Enables External Quotations from sources such as Platt`s to be used in determination of the sales price Enables Quotation and Currency averaging to be used Enables more complex price calculations including discounts / surcharges to be included as part of the price Enables Provisional and Final Invoicing to be used ZA06 I&W Fuels ZA10 Supply ZA11 Lubes Za12 Exchanges Formulas use prices from one of two quotation tables (Manual and Interface Quotation Table) Formula Pricing - IS Oil Pricing Administrator

47. Archiving Report Archiving - Background Control Reports Life-Cycle How are Control reports archived ? How are Control Reports viewed by the Pricing Administrator? How does the Pricing Supervisor review the Control Reports? How does the Manager monitor the status of Control Reports? Attachment : Pricing reports Archiving Pricing Administrator