Today, I will share how the storage contract can be set up and how a storage certificate can be issued from SAP to the counterparty through a prototype.
Often the excess capacity of the silos is rented to the counterparties for storage of grains via long term contract which is called “Storage Contract”. There can be different fees applicable (e.g., storage fee, unloading fee) during this storage period as agreed in the contract set up. Entire process starts with crop reception against a ticket which is issued to the truck-trailer loaded with crop sent by the counterparty at the entry gate, the commodity is weighted (using tare and gross weight in weigh bridge), inspected and an ‘effective’ quantity according to the DPQS is taken to the silo and a storage certificate is issued to the counterparty. This certificate is a legal document for deposit and can be used for selling the crop to the silo owner or to any other party in partial or in full quantity. It is also used to withdraw the crop before or at the end of the contract is over.
As the initial step a DPQS is set up :
DPQS has two components: 1) Volume Schedule (Determines Effective Volume based on quality parameters), 2) Value Schedule (Determines Effective Value of the commodity based on Effective Volume) – you may see my previous blog on DPQS.
Value Schedule has 4 characteristics: Moisture, Foreign Matters, Broken Grains, GDC_002( a derived characteristic based on formula ).Each of these indicate the percentage shrink in volume due to percentage increase in each of these characteristics.
Value Schedule has 4 characteristics : Moisture, Foreign Matters, Broken Grains, GDC_002( a derived characteristic based on formula ).Each of these indicate the threshold for acceptance and the amount of reduction in price due to percentage increase in each of these characteristics
As the next step storage contract is created with Storage Contract # 48 is created for Counter Party 50000101 Commodity – Wheat, Location- 3500
Characteristics are copied from DPQS into the contract :
Storage Contract is crated for particular location, indicates numbers of free days, includes start date, storage end dates:
Calculated Drying Fee ( fixed amount ) & Loadout Fee ( based on tonnage).
Transportation fee and other fees can be added here.
Note : If the freight fee is fixed and no planning and execution monitoring are needed for the truck, vessel – we can add the freight fee here. If the detailed planning and execution monitoring are needed, we need to go for TM. In that case we need to create delivery( instead of creating material document directly ) and generate freight Unit from there. Those freight unit to be tagged to Freight Order and charges to be copied from Freight Agreement to freight order.
Creation of ticket to receive the commodity at the gate of the Silo :
- It can capture Vehicle ID, Driver ID
- Primary selection is based on the counter party.
- Direction of the ticket is incoming & event is unloading determined by the system
- Quality sampling :Quality parameters are recorded in the system against the ticket number, decision is accepted ( Green Traffic Light ) while checked against DPQS. Inspection certificate, Sample id etc. can be recorded here.
- Weighbridge – Recording of Gross Weight :
- Weighbridge – Recording of Tare Weight (After Unloading) :
Net value is calculated by system.
- Ready to register the intake :
- Intake is registered :
SAP’s internal log for the event is stored against the ticket id :
Note : Since this item is for storage service and the inventory is still with counter party, two material documents are posted for same quantity, same batch to nullify the impact of posting.
An application document is posted for this reception event which will be used further by SAP for processing
Detailed Calculation of the effective quantity or adjusted quantity :
Input the external certificate number issued by government ( for some countries)
An Unique GUID is generated as Silo Certificate. This can be used to retrieve the detail to print the certificate.
In the event the counter party wants to take out the commodity partially, previous certificate issued to him to be cancelled first. Here application document 44 becomes editable after cancelling the certificate.
Arrival of Truck from Counter Party to Withdraw Partial Quantity
- An empty Truck is arriving at the gate
- Ticket number to be generated
- Ticket type is outgoing and event is loading as determined by the system
- Ticket number is created
- Tare weight is noted in weigh bridge
- Truck is loaded with 4 Tonne ( as decided by the counter party)
- Gross weight is noted in weigh bridge
- Quality parameters are recorded
- Successfully registered the withdrawal
A new application document is created by the system.
Match Out of Issued Quantity Against The Existing Quantity
Available all load out applicable documents
Calculation of Remaining Volume of Counter Party
Remaining quantities are calculated based on the quality parameter of the issued quantities ( since it is different than the intake value).
System prompts for the decision on the remaining quantities
Re-Issue of Silo Certificate to The Counter Party
Silo certificate is re-issued to the Counter Party based on the available quantity
Numbers of Days Calculation for Storage Service
System automatically calculates the total numbers of days used for the storage service according to the contract
In above section I tried to elaborately explain the steps to set up a storage contract, intake crop quantity against a ticket, partial withdrawal, ways to issue silo certificate and storage days calculation.
