Skip to Content
avatar image
Former Member

SAP IS OIL F&A Pricing - Determination of Final & Provisional Rules


I am giving below the details of the requirement with an example

Oil makes an arrangement with a customer to invoice the sale of Super95 based on the average price published in Platts between December 1 and December 30. Big Oil creates a sales order containing a Formula and Average pricing condition, which specifies that the averaging period is from December 1 to December 30.

Scenario 1:The customer needs Super95 by December 20. The product is delivered and an invoice is created with reference to the delivery document. The provisional rule in Formula and Average Pricing (F&A Pricing) supplies a preliminary price. The invoice has the status “provisional” because the final price of the product has not been calculated.

On December 30 the prices from Platts are averaged and a new invoice with the final price is created

Scenario 2 : On December 30 Customer wants delivery, however the quotes for Dec 30 are not yet finalized by Publishers, and hence will be available next day. Hence It is required to issue Provisional Invoice only.

As per the setting of the Provisional & Final Rules, system picks up Final Rule as the Average Period is reached. How to set up the Provisional & Final Rule to ensure only Provisional rule is applied for 30th

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

0 Answers