Swap Sales in Chemical Industry

1. Swap Sales in Chemical Industry SAP Best Practices for Chemicals

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario 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

3. Required SAP Applications and Company Roles • Required SAP Applications • SAP ECC 6.00 enhancement package 5 • Company Roles • Purchaser • Sales Administrator • Purchasing Manager • Warehouse Clerk • Billing Administrator • Accounts Payable Accountant

4. Detailed Process Description • Swap Sales in Chemical Industry • The 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 scenario 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 scenario 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 scenario refers to SAP Best Practices Company Code 1000

5. Process Flow Diagram Refurbishment Management Supply Material from End Customer from Swap Partner Event Purchaser Supply Matl to End Customer from Swap Partner AP- Accounts Payable (158) Create Purchasing Quantity Contract Assign Requisition and Create PO Supply Material from Own Plant to Swap Partner’s Customer Create Swap Sales Order Create Customer Material Information (Sales Admin_FM) Create Sales Order Create Sales Quantity Contract Approve POs (Optional) Delivery Processing Post Goods Issue Picking (Optional) Statistical Goods Receipt Delivery Processing Picking (Optional) Post Goods Issue Sales Admin. Accts Payable Acct. Billing Admin. Warehouse Clerk Purchasing Manager Billing Billing Invoice Verification

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Budget Planning Business Activity / Event Manual Process Unit Process Process Reference Existing Version / Data Sub-Process Reference System Pass/Fail Decision Process Decision